Life settlements offer an alternative to lapsing or surrendering a life insurance policy by selling it on the secondary market for more than the surrender value. Advisers can differentiate themselves and add value for their clients by discussing the life settlement option. Here’s how to start offering them to your clients.
Identify potential clients. Use our handy Life Settlement Checklist to determine which of your clients could be successful candidates for a life settlement.
Think about their needs and if they could benefit from a life settlement. A life settlement can provide immediate cash to pay medical bills, reduce debt, fund a retirement plan, pay for long-term care or even purchase new insurance coverage.
Talk to your clients about life settlements. Surveys show that 90% of policyholders who have let their policies lapse would have considered selling it as a life settlement if only they’d known about it. For many policyowners, education is the key to making decisions that will maximize their assets and provide for their financial goals.
Contact a life settlement brokerage. A life settlement broker—as opposed to a direct provider—can take your policy to a much wider market of potential buyers, some of whom will only transact business through a brokerage. This will bring in the most competitive offers for any policy.