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.

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!

Read 83 Coventry Direct Customer Reviews and Complaints

Write a Review
Average Customer Rating: 4.5
Rating Snapshot:
5 star: 70 4 star: 4 3 star: 0 2 star: 1 1 star:  8
Bottom Line: 88% would recommend it to a friend
Showing 1-11 of 83
Sort reviews by:

  • A bit of an arduous process, make delightfully pleasant by Matthew Glanzberg

    • By Diane G.,
    • Brooklyn, NY,
    • Mar 21, 2020
    • Verified Reviewer

    Although the process took six months, primarily due to having to find the right physician to complete information on my husband (the insured), Matthew approached it with grace, respect, and wit. He was always responsive and really seemed to care that we get this completed. I would highly recommend him.

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

  • Highly recommend!

    • By Jackie R.,
    • Jonesborough, TN,
    • Mar 17, 2020
    • Verified Reviewer

    Several months ago I decided to explore the sale of a life insurance policy. At the time I knew little of the process or what to expect by way of valuation. Internet research revealed several companies that advertised their interest in purchasing life insurance policies.

    After contacting several companies and discussing the transactions, I experienced a difference in how I was treated. Some companies were reluctant to answer my specific question or supply me with explanatory information. Other companies acted as if they were doing me a favor. The offers to purchase varied from ridiculously low to what I considered fair and reasonable.

    The most informative and courteous contacts were with Scott Kalbfleisch a Regional Director of Coventry. He took time to explain the transaction in detail including possible tax ramifications. He supplied explanatory literature and referenced applicable laws as well as IRS regulations. I was able to independently verify Scott's explanations with the reference information provided.

    During the negation process, Scott was at all times courteous and responsive to my inquiries. All of my phone calls were promptly returned (even on weekends.) The offers made by Coventry were reasonable and not arbitrary. As a result of my dealings with Scott, I was able to make an educated analysis of my available options and make an informed decision. I would highly recommend Scott Kalbfleisch.

    After many discussions with Scott, I entered into a sale agreement with Coventry.

    I recommend Coventry to anyone who is interested in the sale of a life insurance policy. The treatment I received was fair, courteous, educational and informative. Additionally, the execution and submission of documents to complete the transaction was fully explained. The purchase funds were promptly received.

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

  • Working with Coventry

    • By Tom L.,
    • Ponte Vedra, FL,
    • Mar 13, 2020
    • Verified Reviewer

    My wife and I experienced a very high level of professionalism while working with Coventry and in particular with Payton Marcus, our representative. We were always kept informed of the progress and status of our business relationship and in particular, always stayed on the timeline he laid out for us to reach completion of our proposal.

    High marks to Payton.

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

  • Experience with Coventry

    • By James H.,
    • Hood River, OR,
    • Mar 13, 2020
    • Verified Reviewer

    I worked with Peyton Marcus and his shepherding me through the process was excellent. There were times I was a bit frustrated about the steps, but Peyton was always available and did a stellar job in helping me through the steps and answering all my questions along the way. He was clear about what was happening and kept me informed of everything that was going to happen. Thanks.

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

  • Chris Collins did a great job

    • By Steven K.,
    • Bar Harbor, ME,
    • Mar 11, 2020
    • Verified Reviewer

    I highly recommend Chris Collins, who served as my agent for a recent transaction at Coventry Direct. Chris was honest and forthright. I could rely on him for clear explanations of terms and procedures. If he didn't know an answer he immediately contacted someone who did and called back quickly with the needed information. He was patient throughout an extended process of deliberation and negotiation, persistent too, as he called frequently to make sure our process stayed on track and concluded successfully. I appreciate the excellent work that Chris and the important help he gave me.

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

  • A good experience

    • By Mike M.,
    • Winder, GA,
    • Mar 10, 2020
    • Verified Reviewer

    My experience with Coventry Direct was a good one. Travis Conrad was extremely professional and very patient with me as I asked a million questions! I had no idea what the process would be like, and to be honest, I was amazed at the amount of paperwork involved. It also seemed to take a very long time from start to finish. The TV commercial makes it sound like a one-week process...but in reality, it was a 2-month process. Through it all, Travis was constantly in touch and very helpful.

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

  • Life policy

    • By James B.,
    • Brea, CA,
    • Mar 7, 2020
    • Verified Reviewer

    Travis Conrad was very helpful regarding the sale of my wife's life policy. He walked me through the whole procedure and everything he said plus all the very important points he detailed and all were true. He was very helpful in all matters telling me what I needed and when I needed it, as well as the timeline to complete the process.

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

  • Travis Conrad of Coventry

    • By Mary C.,
    • Gainesville, FL,
    • Mar 7, 2020
    • Verified Reviewer

    When I began to research the possibility of selling a term policy I had owned for thirty years, I contacted several providers of the service including Coventry Direct. I spoke with several life settlement brokers before speaking with Travis Conrad. I found Travis to be a listener first, which relieved the majority of my anxiety, he was patient and willing to answer all my questions. He explained the process clearly, provided me with the documents I needed in a timely manner and found me a buyer offering a satisfactory amount of cash. The process took several months and Travis was available every step of the way. I appreciate his willingness to go the extra mile for me. I would recommend Coventry's Travis Conrad to all seeking a life settlement professional.

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

  • Working with Ardit with Coventry has been a good experience

    • By Catherine B.,
    • Indianapolis, IN,
    • Mar 7, 2020
    • Verified Reviewer

    I've been diagnosed with a terminal illness and needed extra money for doctor bills, it was a great help to be able to sell my life insurance policy. Ardit was very friendly and helpful threw out the process, if I had questions or concerns, he would get back with me promptly.

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

  • Excellent work performed by Travis Conrad in the transfer of ownership of Life Insurance Policy

    • By Jean-Loup A.,
    • Malvern, PA,
    • Mar 6, 2020
    • Verified Reviewer

    It gives me great pleasure to express my gratitude for the outstanding professionalism, diligence, and courtesy displayed by Travis Conrad in the execution of the process transferring on December 18, 2017 the ownership of my Life Insurance Policy issued by AXA Equitable Life Insurance Company.

    It would certainly be a greatly encouraging relief if the qualities aforementioned could be established and used as guideposts inspiring and conducting every commercial transaction.

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

  • My Coventry experience

    • By John F B.,
    • Rocky Mount, NC,
    • Mar 5, 2020
    • Verified Reviewer

    I had a life insurance policy I had for eight years.

    As lifestyle and obligations change, I felt my wife and I no longer needed the protection afforded by the policy.

    I contacted Coventry and had a wonderful experience selling my policy.

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

Showing 1-11 of 83

Write a Review for Coventry Direct!

Share your experience to help others shop smarter & discover great products.

Write a Review
Coventry Direct