The LCX Life (LCX) XCHANGE System LCX Life: Your Life Settlement Marketing Organization (LSMO) Welcome to LCX Life! We’re excited to work with you to bring a totally new approach to life settlements to your agents and their clients. Life settlements have evolved considerably over the last two decades into a mainstream financial option for seniors, and people with health challenges that own an unneeded or unwanted life insurance policy. LCX Life’s roots in the life settlement industry goes back to 2007, when it was first founded as Life Care Funding and brought the long-term care life settlement into the market. Since then, LCX Life has revolutionized the life settlement transaction by providing a direct-to-buyer link between insurance brokerage distribution and the end-buyers of life settlements-- eliminating the need to work through a life settlement broker. LCX Life is the only independent Life Settlement Marketing Organization (LSMO) in the industry, and we’re your back-office partner, providing a turn-key life settlement platform for agents, advisors, and independent life insurance brokerage. We contract with multiple life settlement carriers and unique, niche buyers to provide a comprehensive range of direct-to-buyer outlets for life settlement contracts of all policy types and sizes. • •
Working with LCX Life, your agents can access the secondary market to settle a policy through a turnkey platform, and without the need for a life settlement broker. LCX Life can add a new revenue stream to an agent’s bottom line, by rescuing their client’s existing life insurance policy asset that can be repurposed as cash, living benefits or new insurance and investments.
LCX Life also continues to lead the way in the life settlement marketplace with innovative life settlement products designed to address the unique challenges of aging and impaired health. Life Settlement Solutions Menu: • • • • •
Traditional Life Settlement Speed Settlement (non-underwritten) Whole Life and IUL Reverse Settlement (non-underwritten) LTC-Settlement (HSA Benefit Plan) Viatical Settlement (cancer and certified terminal)
Whatever type of insurance policy or circumstances a client may have, LCX Life offers the widest range of direct-to-buyer options in the market for a policy owner to find the best value to address their financial needs.
Working with LCX Life LCX Life is a single-service LSMO, focusing only on life settlements, and we provide the same level of agent education, marketing and case support to an appointed distribution network, that is experienced with insurance and annuity IMO’s across the industry. Our mission is to work with agents, advisors, and our IMO/BGA partners to build a network of Appointed Referral Agents who are educated and supported to offer the life settlement option to policy owners contemplating lapse or surrender. We also work with independent agents, financial advisors, lawyers, accountants, and long-term care industry service providers. With LCX Life, we can rescue thousands of policies every year, and in the process, deliver a recurring revenue stream to your organization. Appointed Referral Agents do not need to obtain any new licenses or complete CE’s, and are covered by E&O at no cost to them. We make life settlements easy, by simplifying and speeding up the process with dedicated account management and turn-key support for all Appointed Referral Agent’s needs. In fact, there is no need to provide medical records, manage cases, or negotiate settlement offers because LCX Life does all that work for you! • • • •
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Agents do not broker life settlements—they act as appointed agent lead generators Agents do not need to hold a life settlements brokerage license and are covered by E&O at no cost Agents don’t need any professional licenses or CE’s to educate policy owners about life settlements The LCX Life system simplifies and speeds up the settlement process by providing dedicated account management and turn-key support for all Agent’s needs. There is no need for Agents to provide medical records, manage or negotiate cases Agents need only refer a case to LCX Life-- and then let us do all the work
The LCX Life (LCX) System We know that you, and your agents are busy everyday managing your core business lines. You are constantly approached about new business opportunities and have to be careful that what you introduce into your system doesn’t distract people from their bread and butter. That’s why we designed the LCX Life Xchange to be a turnkey outlet for agents and advisors to refer life settlement opportunities for a quick evaluation, and then to have the settlement process managed without them being distracted by all the details.
➢ Onboarding and Rollout: The LCX Rollout process is designed to plug your office into our system for agent training, marketing, support, and then case submissions and management. Once your agents submit a case to you, we take over all the work and keep you informed of progress with weekly reporting. We start with an onboarding session with your team to review agent appointments, lead referrals and management, and then map the rollout schedule for agent training and support. LCX Templates: a. b. c. d.
Announcement and Presentation/Webinar email templates Case Submission templates Agent Education and Drip Marketing templates Life Settlement training Webinar modules
The rollout begins with an announcement to your network, webinars and/or in-person agent education sessions, ongoing drip communications, weekly and monthly topical webinar series, and marketing tools provided for agent use.
➢ Appointment and Lead Referral: The LCX Appointment process is similar to the Carrier-IMO appointment process for life, health, and annuity distribution. LCX issues an Appointment Agreement via email to any of your agents requesting to be contracted. Once appointed, they’re registered in the LCX database-CRM as appointed downline of your IMO/BGA. Cases are then submitted as a lead referral through the BGA to then submit to LCX (or any agents submitting cases directly to LCX will be tracked as downline of the BGA). LCX Case Submission tool kit: Step 1: Life Settlement Fact Finder Guide (qualify the prospect) Step 2: Life Settlement Solution Menu (pick the right Settlement options) Step 3: Intake Form (submit policy holder information and in-force illustration) Step 4: Life Settlement Process MAP (step-by-step guide of the settlement process)
➢ Marketing: There’s two ways for agents to add life settlements to their practice as a new profit-center working with LCX. ✓ Retail: Agents can add the life settlement option to their daily mix of products and services just like any other insurance based or financial product by using the template educational materials with their marketing, website and online communications, emails, and other education opportunities such as Webinars and presentations. ✓ Wholesale: Agents can use the LCX Policy Review service as a lapse and surrender prevention strategy for their Book of Business. As lapse or surrender notices as received, those policies should be screened to see if they could qualify for a settlement. LCX will also analyze the Book of Business to identify all the policies that could potentially qualify to be settled, and then the agent can reach out to policy owners letting them know they should not abandon a policy without first determining with their agent if they could qualify for a life settlement.
➢ Policy Evaluation and Settlement Process: LCX focuses on making the settlement process as quick and simple as possible. We take the work out of the hands of the agent, and all they are required to do is present a lead for our three-step evaluation and settlement process. Step One –Information: Submit policy owner information and a current, in-force illustration. Step Two– Analysis: Policy owner information and prevailing health impairments impacting remaining life expectancy are reviewed with (the typical qualifying life expectancy range between 2-10 years). The policy illustration will be reviewed to analyze the policy economics and requirements to keep in-force for the remainder of the insured’s life. Step Three – Results: Longevity/Settlement experts will present a policy valuation analysis detailing what the owner could expect to receive as a percentage of the death benefit for the purchase price of their policy. A formal purchase and sale agreement is executed if the policy owner agrees to the valuation offer. The typical time it takes initial lead intake, to closing and releasing funds is 30-90 days-depending on the type of settlement transacted.
➢ Agent Compensation: LCX offers the only no-load life settlement in the industry. Once a transaction is complete, the policy owner receives the entire settlement offer without any brokerage commission taken out by a third-party settlement broker. • Agents are paid a fixed percentage of the death benefit as a lead referral fee separate from the offer to the policy owner—no settlement brokerage commission is taken out of the offer before it gets to the policy owner. • Because LCX Life is not a life settlement brokerage transaction, Agents do not negotiate on behalf of the policy owner, and the referral fee is paid separately from the life settlement terms--therefore there is no requirement to disclose or report the Agent fee. • The IMO-BGA-Agent hierarchy receives a fixed percentage of the death benefit, and the IMO/BGA has the option to manage the compensation payouts to their downlines. ✓ IMO: 25bps ✓ BGA: 125bps ✓ Appointed Referral Agent: 175bps Conclusion: Your Life Settlement Solution Partner LCX Life is a platform for agents to access the secondary market to settle a policy when the opportunity arises without being distracted by additional costs or work-- which allows them to take advantage of this opportunity for their clients, but remain focused on your primary business lines. Following the LCX system can add an annual six figure revenue stream to an agent’s bottom line. The variety of settlement options and the easy process makes this a consumer friendly financial option for seniors and their families to create the right financial solution for their needs-- from an unneeded life insurance policy. Agents are able to educate policy owners about the value of life settlements, and then refer them to the experts who will work to rescue their policy before it is needlessly abandoned. This “lapse/surrender prevention” approach, proactively identifies policies and then reaches out to the policy owner to present life settlement information and options while the policy is still in-force. Agents incorporate the LCX system into their product mix, and work with this program the same as they do any insurance or annuities they offer in their practice. The life settlement option should not be a random transaction, but instead should be actively discussed with clients to help them or family members as they consider their options with an in-force life insurance policy. Adding LCX Life to an advisor’s marketing materials, presentations/seminars, advertising, website, social media, and discovery process with clients, provides a powerful option to monetize an existing asset instead of abandoning it, after years of premium payments, for little or nothing at all in return.
chris@lcxlife.com / (561) 886-4631 / www.lcxlife.com
LCX Life First Life Settlement Marketing Organization (LSMO) in the Insurance Industry April 1, 2020—LCX Life has officially launch as the first independent Life Settlement Marketing Organization (LSMO) in the Insurance industry. Headed by Chris Orestis, LCX Life continues providing a direct-to-buyer platform for life settlements going to back to its founding in 2007. Formally operated as Life Care Funding, and then as a part of GWG, LCX Life is credited with creating the LTC-Life Settlement with the senior living industry, and opening up direct-to-buyer life settlements to traditional insurance brokerage distribution, financial advisors, attorneys, and accountants. LCX Life is a turn-key life settlement platform, and contracts directly with life settlement carriers and unique, niche buyers. Focusing only on life settlements, LCX Life provides a comprehensive range of direct-to-buyer outlets for life settlement contracts of all policy types and sizes, and delivers the same level of agent education, marketing and case support that is experienced with insurance and annuity IMO’s. • •
Working with LCX Life, agents/advisors can access the secondary market to settle a policy through a directto-buyer platform without the need for a life settlement broker. LCX Life adds a new revenue stream to an agent’s bottom line by rescuing their client’s existing life insurance policy asset that can be repurposed as cash, living benefits or new insurance and investments.
LCX Life is a platform for agents to access the secondary market to settle a policy when the opportunity arises without being distracted by additional costs or work-- which allows them to take advantage of this opportunity for their clients, but remain focused on primary business lines. Following the LCX system can add an annual six figure revenue stream to an agent’s bottom line: 1. 2. 3. 4.
Streamlines the process which makes the transaction easier and faster LCX Life is the only no-load settlement option in the market Agents participating in the program do not need any special licenses or additional E&O coverage Agent compensation based on the face value of the policy is fair for the consumer and the agent
Life settlements are one of the best options available today to help senior aged clients struggling with the financial realities of aging or impaired health that still own an unneeded or unwanted life insurance policy. FACT: There are 150 million in-force life insurance policies in the United States, and seniors own $230 billion of death benefit that could potentially qualify for a life settlement on an ANNUAL basis FACT: 9 out of 10 life policies are in danger of being abandoned without ever paying a death benefit FACT: There was $3.8 Billion of life settlements transacted in 2018 Policy owners make premium payments for years without realizing it is one of the most stable and valuable assets they own. Every policy owner has the legal right to a life settlement, and every advisor has a fiduciary responsibility to inform their clients of this option before they would lapse or surrender a policy. LCX Life is another valuable tool for agents to help people struggling with the unique costs of aging or declining health by rescuing policies from being needlessly abandoned.