Most financial advisors aren’t aware that the answer is “no.”
A 2015 survey of financial advisors by the Lifeline Program confirmed what those of us who work in the life settlement industry confront on a daily basis: Many financial advisors are unfamiliar or misinformed about life settlement transactions.
According to the survey, 40 percent of financial advisors have only a limited familiarity with life settlements or are entirely unfamiliar with these transactions. Only 11 percent of the financial advisors who were surveyed had assisted in the sale of a life settlement or had recommended these transactions to their clients.
Unfortunately, the lack of familiarity that financial advisors have with life settlements has led to a number of lingering misconceptions held about this important financial planning strategy. In this column and more to follow, I’ll shatter some of the common myths in the financial planning industry that lead to false perceptions about life settlements.
For starters, here’s a myth that I hear from even some of the most experienced financial services professionals and insurance brokers: “A life insurance policy is something you need to hold onto until the death of the insured.”
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Originally Published at WealthManagement.com: