Bill Schantz has over three decades of insurance executive experience. In 1998, he founded Senior Settlements, LLC, where he brokered multiple deals worth over $100 million with major investment banks. Today Schantz consults a number of private offerings regarding structural issues as well as Origination and Servicing of individual and pools of policies.
Schantz has always believed that the most important aspect of a life settlement investment is the due diligence performed when acquiring the policy. Without 100% clean title to the policy everything can be lost. Similar to a title search when buying a home Senior Settlements conducts exhaustive due diligence including a UCC1 search, bankruptcy search and divorce filings. They require all beneficiaries to sign off relinquishing any claim they may have had and they also require a competency letter from the attending physician. Nothing is more important than making absolutely certain that there are no liens or encumbrances on the policy.
Schantz also believes that all medical reports must be viewed with a degree of skepticism. The closer a policy is to maturity, the more expensive the policy cost to buy today. Some insureds have overstated their health conditions and list multiple comorbidities with the hope of receiving more money for the sale of their policy. Senior Settlements always uses third party underwriters that review the medical reports for any discrepancies.
Senior Settlements will always review the provenance of a policy to determine valid insurable interest at inception of the policy. Did the original beneficiary have an insurable interest in the life of the insured?, was there any material misrepresentation on the insurance application?, what was the source of premium payments?. Carriers have contested payment of death benefits citing lack of insurable interest at policy inception rendering the policy void. Even if the courts don't agree with the carrier, it is time consuming and costly to defend.
Finally, Senior Settlements has established policies, procedures and best practices to assure clear title to all polices they originate and, in over two decades, they have never had a death benefit contested.
Schantz has always believed that the most important aspect of a life settlement investment is the due diligence performed when acquiring the policy. Without 100% clean title to the policy everything can be lost. Similar to a title search when buying a home Senior Settlements conducts exhaustive due diligence including a UCC1 search, bankruptcy search and divorce filings. They require all beneficiaries to sign off relinquishing any claim they may have had and they also require a competency letter from the attending physician. Nothing is more important than making absolutely certain that there are no liens or encumbrances on the policy.
Schantz also believes that all medical reports must be viewed with a degree of skepticism. The closer a policy is to maturity, the more expensive the policy cost to buy today. Some insureds have overstated their health conditions and list multiple comorbidities with the hope of receiving more money for the sale of their policy. Senior Settlements always uses third party underwriters that review the medical reports for any discrepancies.
Senior Settlements will always review the provenance of a policy to determine valid insurable interest at inception of the policy. Did the original beneficiary have an insurable interest in the life of the insured?, was there any material misrepresentation on the insurance application?, what was the source of premium payments?. Carriers have contested payment of death benefits citing lack of insurable interest at policy inception rendering the policy void. Even if the courts don't agree with the carrier, it is time consuming and costly to defend.
Finally, Senior Settlements has established policies, procedures and best practices to assure clear title to all polices they originate and, in over two decades, they have never had a death benefit contested.
