Research in 2008 shows that over $112 billion in universal, term, and whole life insurance policies is being lapsed annually. That number has only gone up since then due to senior citizens looking for ways to reduce their expenses in retirement by dropping their premiums. Financial advisors need to be aware of this issue and understand that there is a better option — to sell those policies.
Unfortunately, there is a lack of knowledge on life settlements, which causes financial advisors to fail in educating their retired clients about the option to receive an immediate cash payout in exchange for their life policy. When over 80% of policies are surrendered or lapsed every year, there needs to be a better understanding of the life settlement market.
Eligible clients must be 65 or older who are expected to live 3-12 years and possess policies valued at about $100,000 or more. With the sale of a policy, the client does not incur any fees and both he and the financial advisor receive a payout. All parties win and no policy is surrendered unnecessarily.
For many policyowners, education is the key to making decisions that will maximize their assets and provide for their financial goals. To learn more about life settlements and how to offer this valuable option to your clients, visit genesislifesettlements.com or email us directly to talk one-on-one with a Genesis advisor.