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Coventry Direct Reviews

If you’re considering applying to Coventry Direct, you likely saw a TV Commercial or heard about the company that buys existing life insurance policies, so you’re looking for Coventry Direct Reviews. 


This is a very popular search which the company has very clearly tried to get ahead of by dominating the search listings with their own information.  On the other hand there’s random review sites where people gripe because it didn’t work out for them in a Coventry Direct Reviews Yelp page kind of scenario.  If you want an informative opinion, I promise to educate you in this article far more than any other article or review out there. 


First off, what many consumers assume is that selling their life insurance policy means there is a simple price tag for what their policy is worth, as if they’re shopping in a major retail store and the price tag is the price, and there’s no negotiation. 


Instead, imagine selling your home that you’ve owned for many years, but you have no comps to compare in the area, you have no idea what houses are selling for these days, and no realtor to guide you and help boost your market exposure, you don’t even have a For Sale sign in front of your house.  So you have none of these typical things to help you sell your home at its market value, but you do have one company that you go to that buys houses to make a profit.  They have a nice TV commercial, so you give them a call and hope they offer a fair price.  What do you think happens most of the time when you only have one buyer with no pricing to compare?  And where do you even begin a negotiation when your starting point is such a low number?

At this point you’re hopefully starting to consider the value that a life settlement broker brings to the table.  Someone who knows the market well, manages aggressive buying tactics often used to lower the value of a policy, someone who has relationships with a wide range of investors and buying groups, someone who hosts an auction to find the highest bidder, and someone who can get you significantly more money even when they earn a commission too.  Personally I love helping people get more money for their insurance policy, and if my clients win then I win too. 

The biggest difference between a broker and Coventry Direct is that I’m going to take the time to help you understand where the numbers come from, and how the business works.  Coventry has a call center designed to handle the general public, and there are many more hopefuls out there that simply don’t qualify or have any concept of basic investing.  I could never handle the volume that they receive, and they could never hire licensed brokers to sit there and take these mostly dead-end calls all day long.  It’s a simple quantity over quality equation.      


I had a client who had applied to Coventry Direct and only received an offer of $15k.  A few months later I worked with them to present their case to a wide range of buyers, and ultimately got him $62k.  The surprising part of the story is that Coventry ended up being the highest bidder in my auction, even though their original offer was only $15k.  In conversation, the spouse made a comment about how they had to go through a middleman to get a much better price from the same company.  How often is that the case?  Well, it’s certainly the case in life settlements.


Coventry Direct Reviews BBB

Let’s get back to the Coventry direct reviews bbb that you were hoping to find.  Coventry is a pioneer in the life settlement space, and we love them because they create awareness for life settlements through their mass advertising campaigns.  The more people that know about the opportunity to sell your life insurance policy the more clients we’re going to have and the larger the life settlement market becomes. 


Personally, as a broker I send my cases to Coventry to review, but I also send my cases to other buyers as well.  What’s typical in an auction is that offers start out pretty low.  Many buyers wait on the sidelines to see if others are bidding, and will make a bid only after someone else has made a bid.  If it’s a good case the offers can increase quickly, while in other cases it might only be by $2k - $5k at a time.  You’d be surprised to find that in a single case one buyer might be interested at $50k, but as soon as the bid reaches $55k they bow out, and meanwhile the final bid might go all the way up to $120k.  Eventually buyers drop out and eventually we find a high bidder, so why is it that one buyer was willing to pay so much more than another?  There are all kinds of reasons why one group might be more motivated than another on a certain case, and it largely has to do with building a portfolio and cash flow for each investment fund at any given time.  


In these auctions, sometimes Coventry is the highest bidder, and they do a fine job with the closing process, but plenty of times they’re not the highest bidder, or may not even make an offer at all.  Some of the Coventry direct reviews are people super upset that they didn’t get any offer and that it’s all a scam.  No question, their ads over promise to build interest and their offers often under deliver, but they’ll certainly pay the fair market price for a case when a broker is working on it with other buyers driving up the price in my auction.  In a Direct scenario when the seller only applies to Coventry Direct, they’re very unlikely to achieve the fair market value without having any competition.  The same would go for a slow real estate market when only 1 person has looked at the house and made an offer.  The seller is forced to consider it even though it may be well below market value.  


The life settlement market often surprises me.  Sometimes I think I have a decent case worthy of a modest offer, only to find that nearly every buyer passes on the opportunity until I find that 1 buyer who’s willing to go for it.  This is why having full market exposure is so important.  


Coventry Direct Pros and Cons

If I wasn’t clear before Coventry Direct Pros and Cons can vary depending on how you end up working with them.  When you apply to them directly, it’s going to be a con because it’s up to them to tell you how much your policy is worth.  So not only do you not have any other offers to compare, but you also have limited exposure and might not get any kind of offer at all.  


On the other hand if you come to me, I can deliver the pros of Coventry’s buying power, provide real answers and guidance, and give you the most exposure in the marketplace.  That might be the difference of you getting nothing and you getting $40k out of the blue.  This has happened to me plenty of times.  And more commonly it’s the difference between you getting $15k and $62k as was the example above.  


Unfortunately life insurance is only a good investment if you die earlier than expected, so when you reach an old age you may have spent $100k on a policy only to get a life settlement offer for $50k.  Your other option is to lapse the policy because you can’t afford it anymore and you know the payments could go on for many years.  On the one hand you could look at it and say that your policy should be worth $150k because you’ve spent $100k on it, but on the other hand you could accept the reality that you didn’t die early, and that this really wasn’t a good investment after all.  Accepting the $50k is really pennies from heaven as your other option is $0 when you miss the next premium payment on the policy.  And if you hang onto the policy for years to come, the investment could certainly get worse.   


This example can be made time and time again.  Ultimately investors are looking at how long they think someone is likely going to live, and how much that policy is going to cost to keep it going.  If there’s enough death benefit to cover the cost of the policy plus the cost of the settlement and make interest on top, then it’s a worthy investment, but not every policy is a worthy investment, so sometimes we unfortunately discover that a policy is simply worthless.  


The whole point of insurance is to cover damages when something unexpected happens.  Somewhere along the way, life insurance agents and insurance companies started selling the idea that life insurance is a great investment, but if you think beyond the consumer opportunity and realize that this great investment is being offered by a highly profitable insurance company, who do you think the real investor is? 


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