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 38 Coventry Direct Customer Reviews and Complaints

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Average Customer Rating: 4.0
Rating Snapshot:
5 star: 25 4 star: 4 3 star: 0 2 star: 1 1 star:  8
Bottom Line: 74% would recommend it to a friend
Showing 1-11 of 38
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  • Our experience with Peter Hershon

    • By Reed B.,
    • Lebec, CA,
    • Jan 24, 2020
    • Verified Reviewer

    My wife and I saw the commercial for Coventry on TV. We had an increase on our premiums for our Life Insurance policy and gave Coventry a call. Everyone we talked to was very helpful.

    Peter Hershon called us and told us everything we needed to do. He walked us through the paperwork. He was always available when we had questions or got back to us as soon as he could.

    Once we sent in all the paperwork and had a phone interview, we received our payment within two weeks.

    We are very happy with our decision to sell our policy to Coventry.

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

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  • Great service, quick responses

    • By Robert H.,
    • New Jersey,
    • Jan 23, 2020
    • Verified Reviewer

    Responses were always fast and answered questions. Closing happened very fast as promised. Everything went as we were led to expect. Peter, our rep, was always responsive and clear. The process was intimidating but he walked us through it and we always felt comfortable.

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

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  • 1 out 1 people found this review helpful

    Not as advertised

    • By Monica H.,
    • California,
    • Jan 11, 2020
    • Verified Reviewer

    I responded to the TV commercial about selling my term life insurance. The ad says to call to see if your POLICY qualifies...turns out it has nothing to do with your policy. I was told that even though I am 66 now I didn't qualify because I am too healthy!

    But they did explain that if my health status changed (for the worse of course) then I could call back. So they apparently are only interested in buying your life insurance policy if they won't have to pay your premiums too much longer!

    Bottom Line: No, I would not recommend this to a friend

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  • 1 out 1 people found this review helpful

    Selling life insurance

    • By Lina R C.,
    • Dallas, TX,
    • Jan 8, 2020
    • Verified Reviewer

    I sold a life insurance policy to Coventry Direct. My yearly premiums were about to increase significantly. Their agent Ryan Grow was a great help to me. He explained the entire process and kept me informed of all proceedings. Everything that was promised was delivered in a timely manner. It was a good experience.

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

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  • Coventry was a great partner

    • By Tobias B.,
    • Kansas,
    • Dec 26, 2019
    • Verified Reviewer

    I just received a check from Coventry that was for a very fair amount to me, and what I hope is a very fair amount for their investors. My transaction took just over a year to complete, not due to any issues with Coventry, but due to the learning process and special circumstances that I had. Coventry's Chris Collins and Tyson Mayer were very informative, very persistent in advocating for me, and most of all very caring during our interactions. I would highly recommend both of these gentlemen.

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

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  • 2 out 2 people found this review helpful

    Sold my Term Life Insurance to Coventry

    • By Phillip W.,
    • Connecticut,
    • Nov 11, 2019
    • Verified Reviewer

    I had a 15-year term life insurance policy which was about to expire within 3 months (I'm 57). The premiums to continue it were astronomical. For me to convert it to a whole life policy meant the premium would increase from $1,230/year to $37,000/year (NOT a Typo - $37K). Plus, I had been diagnosed with a terminal illness. The premium increase was out of the question for me to continue the policy, so it was going to simply expire.

    I contacted Coventry and dealt with Scott Kalbfleisch. From day one Scott was a consummate professional. He reviewed my health and policy details meticulously and made me an offer to buy my policy and take over the premiums. Within 6 weeks we completed all paperwork and the cash was directly deposited into my account within 24 hours of being told that all paperwork was finalized.

    I was able to clear all my medical and credit card debt and still have over $100,000 remaining for emergencies.

    I cannot praise Scott enough for keeping me constantly apprised of where we were in the process, and demonstrating the highest degree of professionalism and concern for my well-being. If you are in the difficult situation of facing a terminal illness and have a policy that you'll never see the benefits from, call Coventry and ask to speak to Scott.

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

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  • 7 out 7 people found this review helpful

    All fraudulent advertising and a scam.

    Have serious and chronic medical problems halting my work as a physician. Applied to sell a $100,000 life policy. Tons of medical documentation supporting the need.

    Coventry wasted over a month collecting my Medicals for blood cancer. Heart attacks and more. I’m on disability.

    They came back refusing to buy my policy. "I’m not sick enough". They only want those on deaths bed to buy so they do not have to pay out much in premiums or a sale.

    DO NOT WASTE your time with this company. They are fraudulent with false advertisement all over.

    If you are in hospice with a week to live, they give 1/3 of the policy I hear from other dissatisfied people.

    A scam and misleading company.

    Bottom Line: No, I would not recommend this to a friend

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  • 6 out 7 people found this review helpful

    Liars

    • By Gerald B.,
    • Tulsa, OK,
    • Sep 26, 2019
    • Verified Reviewer

    After reviewing my health questions, they said that although I was 72, I wasn’t dying so they didn’t want to purchase the last 3 years of my term policy. These crooks only want terminal folks. Doesn’t say that in their ad, does it.

    Bottom Line: No, I would not recommend this to a friend

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  • 7 out 8 people found this review helpful

    Not what the TV ad lets you believe

    • By Robert C.,
    • Grand Rapids, MI,
    • Aug 1, 2019
    • Verified Reviewer

    I saw the TV ad showing the older couple happy and healthy, discussing selling their policy to Coventry. The purpose of this couple selling was to have extra money for vacations, medical, and other necessities. I contacted Coventry because I have a term life insurance policy for a significant amount of money. The agent called me and we reviewed the opportunity which I told them that I was open to selling my policy. However, after going over my history being well over 60 years old they told me I was too healthy to consider buying my policy from me.

    Watching the TV ad nothing is mentioned about being on or near the deathbed. This is totally deceptive advertising as they could easily make that very clear. The FTC commission should review.

    Bottom Line: No, I would not recommend this to a friend

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  • 11 out 11 people found this review helpful

    Don't get your hopes up

    • By Dennis S.,
    • Ohio,
    • Jun 5, 2019
    • Verified Reviewer

    My life insurance came up for review and the cost was going to go up significantly, so as advertise Coventry should be able to help by cashing at least some of my $150,000 policy. Well after weeks of waiting, they said flat no! The investment would not pay them. Now I am 67 years old with diabetes and have had two heart attacks plus stage two kidney failure, so unless you are going to die very very soon, don't waste your time.

    Bottom Line: No, I would not recommend this to a friend

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  • 12 out 12 people found this review helpful

    Did not help.

    • By Randy S.,
    • Georgia,
    • May 14, 2019
    • Verified Reviewer

    I recently had a heart attack. I have a term policy that will expire in a year and a half. I was told that it would not be a problem and they could help. I am in need of help for some medical bills. After two weeks, I get a phone call that the policy would cost too much, after two weeks of promising they could help. I just hope I die in the next year and a half. They are a hoax.

    Bottom Line: No, I would not recommend this to a friend

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Showing 1-11 of 38

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