It is the advisor’s role to help their clients explore all of their options, including a life settlement, when a policy is no longer needed, wanted or affordable.
Advisors serve a special purpose in counseling and managing their clients’ financial needs and options.
An advisor should review every aspect of a client’s portfolio to determine if the assets within are performing properly.
If a senior determines that a life settlement is the right alternative for their particular situation, an advisor can add significant value to the transaction on behalf of their client.
An advisor’s important role in a life settlement transaction is to protect their client. In addition to representing their client’s best interests, an advisor should confer with state laws to ensure all needs are being met and laws and regulations are being followed by all parties.
Often overlooked are performances of life insurance policies.
A life insurance policy is an investment like equities, fixed income or real estate, and should be reviewed from time to time to see if it still meets the needs for which it was initially purchased. There are times when an advisor or policy owner may conclude that the proceeds from the sale of a policy could be deployed in a better performing investment.
A broker versus a provider
It is possible to engage in a life settlement through either a broker or provider. However, most settlements are conducted through a broker, who can then solicit multiple competitive bids on behalf of the insured. The advantage of working directly with a provider – which is only responsible for its own bid – is that intermediaries are eliminated from the process. The ultimate goal is to obtain the best possible settlement on the best possible terms.
Stay Informed of Industry News
Explaining Life Settlements - What Policyholders Need to Know
Do you have a life insurance policy that you’re about to let lapse? Are you 65 years or older?
5 Tips for a Successful Life Settlement Negotiation
There are a lot of factors that go into determining the value of a life settlement. However, none are as important as your ability to…
LISA Endorses H.R. 5958, the “Senior Health Planning Account Act”
The Life Insurance Settlement Association (LISA) today endorsed H.R. 5958, the “Senior Health Planning Account Act”, introduced by Rep. Brian Higgins (D-NY) and Rep. Gregory…
Get Your Team on the Court
The life settlement industry is undergoing a period of steady growth, fueled by demographic tailwinds and increased consumer awareness of the life settlement option as…