About Coventry Direct

Whether your life insurance premiums are too expensive to maintain, you have more life insurance coverage than you currently need, you need help with increasing medical or long-term care expenses, or you’d like to boost your retirement funds, Coventry Direct can help you sell all or part of your life insurance policy for cash.

According to Coventry Direct, this process—known as a life settlement—can help you realize “significantly” more value than if your life insurance policy lapsed or was surrendered. In fact, Coventry claims that a life settlement could help you receive 4X more than the surrender amount!

All you have to do is complete an online form to see if you qualify, and Coventry Direct promises to “help you discover your life insurance policy’s hidden value.”

If you’re thinking about selling some or all of your life insurance policy, you have a lot of questions. After all, you’re probably talking about a significant chunk of change here. What are the details behind a life settlement? Is it a good idea? What are the pros and cons? When it comes down to it, is Coventry Direct your best option?

Let’s start answering your questions by taking a look at life settlement basics.

What Is a Life Settlement? How Does It Work?

According to the Life Insurance Settlement Association (LISA):

“A life settlement is the sale of a life insurance policy to a third party for a value in excess of the policy’s cash surrender value, but less than its face value, or death benefit. A policy owner receives a cash payment, while the purchaser of the policy assumes all future premium payments and receives the death benefit upon the death of the insured.”

From a legal perspective, this is possible because a life insurance policy is considered property, similar to stocks and bonds. As such, they can (among other things) be borrowed against for a loan and sold to another individual.

Here’s a simplified look at how it works: A portion of every payment you make on a life insurance policy goes toward increasing its cash value. So, all things being equal, someone who’s paid on their policy for 20 years will almost certainly have more cash value at stake than some who’s been making payments for 5.

Depending on the type of policy you have though (e.g. whole, universal, variable, etc.), your policy can also gain cash value in other ways. These include formulas determined by the carrier, current interest rates, subaccounts like stocks and bonds, and more.

Now, let’s say that you’re 70, in poor health, and can’t afford your monthly payments any longer. You’ve been paying on your policy for decades and it now has a total cash value of $250K. However, if you were to surrender your policy to the carrier, it might only be worth a fraction of that amount; say, $30K.

Enter a company like Coventry Direct, who could arrange to purchase your policy for $180K. Sure, it’s much less than the actual value of the policy, but much more than what you’d get if you were to surrender the coverage. Then, when you passed away, the company would cash in your policy and receive the full $250K, netting them a $70K profit.

But hold on: Is Coventry Direct the company that will purchase your life insurance policy, or is it someone else?

Does Coventry Direct Purchase Life Settlements?

According to a disclaimer at the bottom of their website:

“Coventry Direct is a marketing company. It is not a life settlement provider or broker. Coventry Direct will refer qualified policies to a licensed entity.”

In other words, the answer is no. Instead, Coventry Direct acts as a kind of referral service, essentially advertising policies to potential investors, who often try to outbid one another. However, it appears the company will qualify your policy prior to submitting it to investors, which can be determined by “your age, type of insurance policy, the premiums and your health.”

You’ll also need to be 65+ (or have had a change in health) with a life insurance policy face value equal to or greater than $100K.

Regardless whether you go through Coventry Direct or another company, is a life settlement a good idea in the first place?

Life Settlement Pros & Cons

As we briefly discussed above, perhaps the biggest benefit of selling a life insurance policy is that you can free up cash to use for medical expenses, retirement funds, or just about anything else. And life settlements can be even more beneficial depending on your reason for selling (i.e. can no longer afford the premium, etc.).

On the other hand, if possible, most professionals recommend keeping life insurance policies in force until the policyholder has passed. Why? Because the payout to spouses and heirs will be much greater than anything offered through a life settlement.

On top of this lower amount, any income earned through a life settlement may be taxed as income, depending on how much premium you’ve paid (generally, money paid as part of a life insurance policy is non-taxable). Also, depending on your state, the life settlement industry may be largely unregulated, and some agents don’t have to be licensed or registered with the state in order to run their business. In short, there could be very little oversight of the industry in your state.

Finally, keep in mind that the life settlements industry is relatively new, and competition between companies can be intense. As such, you may experience some hard selling techniques after reaching out for a quote.

To help protect yourself and ensure you’re making the right decision, the Financial Industry Regulatory Authority (FINRA) recommends uncovering answers to the following questions:

  • Is the life settlement provider licensed in my state?
  • What will happen to my policy? Will it be held, sold to another company, or packaged with other policies and sold to investors?
  • What information is required? Who needs it, and what will they do with it?
  • What’s the best way to protect my privacy?
  • Am I getting the best price for my policy?
  • What are the transaction costs/fees? Are there any tax consequences?
  • Am I able to change my mind? If so, will there be any penalties?
  • Is this in my best interest? Am I being pressured into making a decision?

Considering everything we’ve talked about so far, what are Coventry Direct’s customers saying about their experiences?

Coventry Direct Customer Reviews

Considering the length of time the company’s been in business, along with the fact that they’re the largest life settlement company in the industry (more than $3 billion purchased to date), there was surprisingly little online customer feedback for Coventry Direct at the time of our research. Obviously, the company’s busy buying policies, but it doesn’t seem like customers are talking about their experiences online once the process is complete.

In fact, the vast majority of the online reviews we encountered were for Coventry Direct’s parent company (Coventry Health Care, Inc.), which is primarily a health insurance provider. This was especially the case on Coventry’s Better Business Bureau page, where they had an A+ rating, despite 400+ closed complaints (as of 5/2/16).

We also found a 2014 Business Insider article covering AIG’s litigation against Coventry Direct, claiming they “used a network of shell companies to artificially inflate the prices to [some of their investors].” The case appears to have been settled earlier this year.

Is Coventry Direct Your Best Option for Life Settlements?

If you search online for life settlement companies, you’ll find that Coventry Direct is certainly the largest. However, they’re definitely not your only option. To find a member company in your state that’s authorized by the Life Insurance Settlement Association, be sure to check out the organization’s Search page.

Also, considering the amount of money potentially on the line, you’ll also want to speak with your financial planner or advisor, who can provide professional advice about whether or not a life settlement is in your best interests.

Did you sell your life insurance policy to Coventry Direct? How did the process go? Do you feel like you got a fair deal? Tell us all about it by writing a review below!

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20 Consumer Reviews for Coventry Direct

Average Consumer Rating: 4.5
Rating Snapshot:
5 star: 16 4 star: 2 3 star: 0 2 star: 0 1 star:  2
Bottom Line: 90% would recommend it to a friend
Showing 1-11 of 20
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  • Professionalism with a personal touch

    I am writing this review in spite of the fact that we were unable to complete a transaction (due to details beyond Coventry's control) because I was highly impressed with the perfect blend of professionalism and friendliness projected by the two representatives with whom I interacted, specifically Tyrone Dixon and Ardit Hoxha. To have had such pleasant experiences with both representatives tells me that Coventry is doing something right as it relates to their hiring and training. So sorry we were unable to complete the deal.

    Bottom Line: Yes, I would recommend this to a friend

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  • 2 out 2 people found this review helpful

    Successful policy sale

    • California,
    • Nov 5, 2017
    • Verified Reviewer

    Coventry completed conversion and purchase of a 20-year term policy that was 16 years old for me today. Chris Collins and Tyson Mayer were very professional and a true pleasure to deal with. The sale went as smooth as could be. I highly recommend this team and got the feeling they were really working for my best interest. While constrained by the reality of the secondary market, these gentlemen got me what I felt was a very good price.

    Bottom Line: Yes, I would recommend this to a friend

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  • 2 out 2 people found this review helpful

    Extremely fast service

    I had the pleasure of working with Tyson Mayer who very quickly reviewed my case and got me a decision right away. I was very satisfied with the offer I got from Coventry. Tyson helped guide me through the process and handled every aspect in a professional way and got me my money even faster than I thought I would get it.

    Bottom Line: Yes, I would recommend this to a friend

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  • 1 out 2 people found this review helpful

    Life insurance

    • Meridian, ID,
    • Oct 15, 2017
    • Verified Reviewer

    Coventry Direct is a professional company by helping us through the process of selling our life insurance policy. Ms. Rooney was our agent and worked wholeheartedly to keep us well informed of the procedure. Thank you for the positive experience.

    Bottom Line: Yes, I would recommend this to a friend

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  • 2 out 3 people found this review helpful

    Excellent experience!

    • Minneapolis, MN,
    • Sep 25, 2017
    • Verified Reviewer

    Tyson Mayer of Coventry walked me through the process of selling a life insurance policy that I no longer needed. What could have been a very confusing and frustrating process was made uncomplicated with Tyson's help every step of the way.

    When I received all the papers to fill out and return, Tyson helped me through what looked to be a very overwhelming process that I didn't think I could even complete. He went through everything, page by page and we got it done.

    In addition, whenever I had a question Tyson would actually answer his phone or call me back within minutes. No pushing buttons and being on hold for long periods of time which can be so frustrating.

    Coventry and Tyson worked very hard for me and helped me through a very difficult time in my life. They paid more than a fair price for my policy, and I am forever grateful.

    Bottom Line: Yes, I would recommend this to a friend

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  • 4 out 5 people found this review helpful

    Coventry stepped up to quickly purchase my policy prior to expiration

    • Pasadena, CA,
    • Aug 29, 2017
    • Verified Reviewer

    My policy was about to expire when I discovered the possibility of a life settlement program with Coventry. I had only 26 days to complete numerous detailed pages to sell my policy to Coventry, or my 25-year-old policy conversion window would end. My options were to default on converting to a whole life policy from term life at a premium increase that was four times the rate and not affordable for me at the 400% increased rates for a now 70-year-old male, or convert to a life settlement with Coventry.

    Fortunately, my inquiry was received by Scott Kalbfleisch, a very capable associate at Coventry. Scott is a true professional in every way imaginable. He courteously and efficiently assisted me in completing all the forms ON TIME and frequently offered to complete as much of the paperwork as possible. He efficiently negotiated a higher settlement amount on my behalf and checked and rechecked that all the documents were submitted completed within the short time frame and with absolute accuracy.

    Many thanks to Scott Kalbfleisch and his associates at Coventry for completing an extremely complicated life settlement for me and my family.

    Bottom Line: Yes, I would recommend this to a friend

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  • 4 out 4 people found this review helpful

    Patience, persistence, and professionalism

    I wish to relate my experiences with Coventry Inc through my relationship and interaction with Mr. Scott Kalbfleisch. I learned about Coventry through an advertisement on TV. On the initial call, Scott explained everything in a logical, sequential, and understandable manner. Throughout the initial portion of medical records and HIPPA release forms, Scott ensured that the forms were sent to me on time and in a manner convenient for me. I have no printer and required paper copies via US Postal service. Scott was always accessible via phone, text, or email, which made the application process a smooth one.

    The second phase of legal documents, notarized forms, and beneficiary transfer forms was a little more involved but not due to any lack of effort by Scott. Rather, sending loose forms meant that a single document was spread out with other forms. Perhaps it was an idiosyncrasy of the Notary Public who wanted to read the document sequentially and completely, not just the notarized page. I recommend that documents be either stapled or put in one of those document holders with clear plastic front and back with a plastic slider to hold together.

    The next phase was the offer phase. I was working with one other company and wanted to be fair and impartial. The other company made a firm offer with a suspense date. I informed Scott that I needed a response from Coventry. There was a delay which exceeded the suspense date, and in absence of a valid competing offer from Coventry, I accepted in writing that offer.

    It is this phase which I believe showcases Scott's superior interpersonal skills. He showed me understanding and patience and respected my desire to be neutral and impartial. When Coventry's offer did come through, he helped me to go back to the first company for an amendment of their offer. It was this delicate balance of persistence and patience which allowed me in good conscience to accept Coventry's offer. Even now Scott is updating me as to the process of the final transfer of funds which he could opt not to do, but it is this attention to detail and follow through which elevates him to a higher plane than his competition.

    I believe Coventry Inc is fortunate to have an individual of such high caliber as part of the team.

    Bottom Line: Yes, I would recommend this to a friend

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  • 5 out 5 people found this review helpful

    Cash buy-out of life insurance policy

    My mom, Opal Williams, just turned 90 and her life insurance premiums have become quite a burden. Mom thought her investment was a sound one, but when she turned out to live much longer than she expected, she just couldn't keep coming up with the payments. We contacted Coventry and got to work with Tyson Mayer. He listened to our situation and worked with Mom and me to help us sell the policies for a fair price. It took several months, but Tyson was diligent in his communication with us. Even when he was on vacation, Tyson returned our calls. Tyson negotiated to get us the amount of money Mom was hoping for. Tyson managed our account within our deadline and got Mom her check before the next due date of premiums.

    Since receiving the checks, Mom has been relieved of having to pay premiums and does not have to worry about finding funds if she needs extra care. I really appreciate Tyson treating us with dignity and care throughout this process. Thank you so much.

    Bottom Line: Yes, I would recommend this to a friend

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  • 5 out 5 people found this review helpful

    Full customer satisfaction

    I saw Coventry Direct's ads on TV in early May. I contacted them around May 7, 2017. Mr. Tyson Mayer, Regional Vice President for Coventry, contacted me by phone on May 9, 2017. I received authorization forms on May 9, 2017, and returned them on May 15, 2017.

    Mr. Tyson contacted me May 24th and 31, 2017 to let me know he had received doctors letters and a few offers. I received an acceptable offer for my policy on 6/5/2017. Mr. Mayer mailed out my paperwork to finalize the contract 6/8/2017, and I received them June 9, 2017. I returned the documents June 12, 2017. I got the final forms on June 14, 2017.

    Mr. Mayer called me June 26, 2017, and told me that the policy title had been transferred. My check had been sent by FedEx overnight. I received the check for the policy June 26, 2017.

    During the entire process from the initial contact to the final transaction, I was completely satisfied with Coventry. Mr. Tyson Mayer was always cordial, concerned with my condition, informative, courteous, genuine, and there 24/7. I was always kept current on my status during the process. I have received follow-ups from Mr. Mayer personally. I would highly recommend Coventry to my friends, family, and the general public.

    Sincerely yours,

    Lance M. Shaffer.

    Bottom Line: Yes, I would recommend this to a friend

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  • 2 out 2 people found this review helpful

    Coventry got the job done!

    • Phoenix, Arizona,
    • Aug 15, 2017
    • Verified Reviewer

    I wanted to share my experience with Coventry.com.

    Feeling a bit skeptical after seeing a late night commercial, I looked into it to see what it was about and if it was legit. While I found the company to be a bit unorganized and slow to process and approve my life settlement, my advisor Billy Gu did a really good job. He constantly kept in touch to let me know where it was in the process and contacted me immediately when I got approved.

    Billy even went the extra mile and did a three-way phone call with me to my insurance company when I could not find the original paperwork. This helped alleviate the stress and hassle on my end.

    All in all, because of Billy's expertise it was a good experience. I do advise anybody who's going through this process to read the contract carefully, and then make an educated decision if this is best for you.

    Thank you again Billy Gu!

    Bottom Line: Yes, I would recommend this to a friend

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  • 2 out 2 people found this review helpful

    Wonderful, helpful people

    Our experience with Coventry was excellent from the first phone call until our money appeared in our bank account. KELLY ROONEY was our contact person, and she took care of us as if we were family. She knew our situation and the anxiety we felt over my husband's cancer and an impending move. She called and kept us in the loop as to what was happening, the timeline, and just what to expect. She got things done even though our case was a difficult one dealing with the life insurance company we had. I will certainly tell others where to go when there seems to be no hope. Thank you all at Coventry Direct.

    Bottom Line: Yes, I would recommend this to a friend

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