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!

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24 Consumer Reviews for Coventry Direct

Average Consumer Rating: 4.4
Rating Snapshot:
5 star: 19 4 star: 2 3 star: 0 2 star: 0 1 star:  3
Bottom Line: 88% would recommend it to a friend
Showing 1-11 of 24
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  • 27 out 32 people found this review helpful

    Denial

    • Lumberton, MS,
    • May 1, 2017
    • Verified Reviewer

    They say if you no longer can afford your policy, that they would buy it. Fraud advertising. paper workI have a 100,000 policy, and they received all my paperwork. Then I was denied since I Wasn't about to drop dead or meet their requirements. They have all my medical papers and I have requested them back. I have yet to receive them. This is a company seeking your information, false advertisement.

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

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  • 15 out 18 people found this review helpful

    Lies and B.S. and foot-dragging!

    Well, I wish I would have seen this when I "trusted" Billy to get me something for my $350,000 life insurance policy. Problem is that until he and his company were nearly two months into the review, no one had the idea to check with my company and talk about "converting" the policy! Well, the idiots, "Billy" found out that we were a month late in asking that question! So we could have converted the policy with "no medical questions" to a frozen premium of about $764 for the next 35 years, which would have made the product of interest to a buyer! So because "Billy" was (is) clueless, all I got from was "sorry!"

    "Sorry" won't pay the bills! Do not trust this company; I am sorry I did!

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

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  • 14 out 19 people found this review helpful

    Cherry pickers

    • Rhode Island,
    • Jan 29, 2018
    • Verified Reviewer

    They are scammers. Their only interest is to make money from your life settlement. They cherry pick. They were not interested in my insurance policies that totaled Two Hundred Thousand.

    Very pleasant in the beginning, but bad communication. They say we'll work with you, but don't.

    Don't waste your time on them. They are only interested in making money and not interested in your life situation.

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

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  • 9 out 13 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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  • 8 out 8 people found this review helpful

    Grateful

    • Rancho Cucamonga, CA,
    • Feb 2, 2018
    • Verified Reviewer

    My husband's life insurance was due to expire, and we paid thousands of dollars to maintain the insurance. My husband mentioned Coventry and that they buy back the life insurance. So I looked into it and met Scott Kalbfleisch, and from start to finish, the whole process went so smooth. I understood it wouldn't be the payout that his life insurance offered, but it would be a nice settlement that would help with his continued in-home nursing and medications.

    Yes, as many of you know or will find out, that if you do outlive your insurance, then Coventry is a way to receive some compensation for all the years of monthly payments. Once my husband's insurance expired we were to receive nothing. So again thank you, Coventry, for all the help through this process.

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

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  • 7 out 7 people found this review helpful

    Satisfied

    Having a Term Life Insurance Policy that was due to expire in several years with no cash value my wife and I decided to review our options. We were aware of Coventry as a result of their TV commercials.

    The entire process from start to finish was about six months, at the end of which I received the negotiated price for my policy. Working with Coventry's representative (Tyson Mayer) was always a professional and enjoyable experience. Tyson kept us up to date every step of the way. The many documents requiring signatures were reviewed by two attorneys and discussed with a former insurance/financial planner. All documents and forms were approved with one minor change.

    My wife and I would strongly recommend working with Tyson Mayer to confirm your options.

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

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  • 7 out 8 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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  • 7 out 10 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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  • 7 out 11 people found this review helpful

    The Coventry experience

    • East Tawas, MI,
    • Jan 13, 2018
    • Verified Reviewer

    In contacting Coventry, I had no idea what to expect. After the initial interview, I was informed that they would like to continue the process. It was at this time I was introduced to Scott Kalbfleish, my new contact. I was so impressed with Scott from the beginning; his at-ease, personal and professional attitude put me at ease. Although the process was long and sometimes demanding, Scott always made himself available and kept me informed either by phone, email or voice mail, always returning my messages. Now that the process is complete and all parties are satisfied, I can only say good things about Coventry and it was well worth the time.

    Coventry Direct, if you could clone Scott, your company would really be on to something.

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

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  • 6 out 7 people found this review helpful

    A blessing for many

    • Philadelphia, PA,
    • Aug 1, 2017
    • Verified Reviewer

    I cannot recommend Coventry Direct highly enough. At a point during my husband's terminal illness, we decided to investigate the option of selling one of his insurance policies to help with our current finances. Being a life insurance agent, my husband investigated various companies who perform this service, and we ended up making a deal with Tyson Mayer at Coventry.

    Being that we are local to the headquarters, we chose to meet Tyson and his associates personally. They were very kind, professional and worked hard to give us the best offer possible and, in fact, they made it a point to do so. Once our decision was made, the process was very quick. We signed papers and got our payment within days. Having this money was very comforting to us during a very challenging and emotional time, and working with Tyson and Coventry made a very emotional and regretful situation as best as it could possibly be.

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

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  • 6 out 7 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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