But life settlements do not foster any of that, and that raises a number of concerns. Insurance companies who were interviewed for this story did not say they are opposed to life settlements, but they did urge customers to examine all options with their policies before they decide to sell. Bill Werfelman, a New York Life spokesperson, stresses that customers should review their policy to see if it contains any features that may meet their financial needs, rather than having to sell it. He says some policies have features such as accelerated death benefits that can help customers overcome short-term financial troubles. Understanding their options may allow them to keep the policy and mitigate the need to sell it.
Some companies discourage agents from assisting with life settlements.
Tom Towers, a Northwestern Mutual Life spokesperson, says the company's agents are prohibited from receiving any financial benefits for helping to broker a life settlement deal for any of the company's clients. It's important for them not to make a poor decision when they are presented with an opportunity like this. Some companies discourage agents from assisting with life settlements. Since it is a fairly new industry, the life settlement business is not heavily regulated. Currently, Texas is the only state with proposed legislation to regulate life settlements the same way as viaticals are regulated.