text size
It is the fiduciary duty of financial planners to fully understand a client's financial situation and make recommendations that are most advantageous to their client's needs.
Life insurance policies are assets and maximizing their value means Life Settlements have a legitimate place in financial planning discussions with clients.
How financial planners fit into Life Settlements
Financial planners have an excellent opportunity with Life Settlements to assist clients age 65 and older in obtaining a more advantageous alternative to surrendering their life insurance policy or letting it lapse. Financial planners can fulfill their fiduciary responsibility to promote their client's best interests by advising them of all available options for their life insurance asset as part of a broader financial planning strategy. A financial professional should observe the following steps when exploring Life Settlements as an option for their clients:
- Determine the suitability for a Life Settlement by evaluating the client's overall financial needs and determine if their current insurance coverage compliments their financial needs. You may find that they do not have enough coverage or more than they currently need.
- Utilize our online qualifying worksheet tool to determine the viability of a Life Settlement transaction for your client.
- Perform due diligence by researching the marketplace for a reputable Life Settlement provider/broker who is backed by qualified funders.
- Pursue the highest market value for the seller by insisting on multiple offers from the Life Settlement provider.
How financial planners and advisors benefit from Life Settlements
The majority of Life Settlements are performed for the purpose of purchasing other insurance or financial products. The proceeds from a Life Settlement are unrestricted and can be used to fulfill a wide range of financial and estate planning objectives for your clients. Life Settlements provide clients with the flexibility to bring liquidity to one asset and, in turn, use the funds to purchase other investments.
How financial planning clients benefit from Life Settlements
When Life Settlements are appropriate, they offer clients access to large sums of money, financial flexibility, and the ability to adjust insurance coverage to best suit their needs. Life Settlements can help clients in the following ways:
- Buy new life insurance policies that are better suited to the insured or provide more cost effective coverage
- Eliminate expensive premiums
- Invest money elsewhere
- Eliminate or reduce debt
- Address estate planning changes
- Fund retirement
- Enable gift giving to heirs or charities