Financial Advisors

In Deciding to Pursue a Life Settlement, Your Professional Assistance is Needed

Everyday 10,000 people are turning 65. By 2030 nearly 71 million Americans will be over the age of today's retirement with Life Settlements expected to gain increased acceptance as a useful financial tool. Due to your consultative role, you are often gatekeepers of philanthropic giving. Your qualified professional assistance can help your clients decide if a Life Settlement is the appropriate way to go.

Often the case with wealth management, unless life insurance is held in a trust, personal life insurance is often neglected as a manageable asset. Inquiring about their insurance throughout changing circumstances will give a broader picture of the client's estate planning objectives, tax implications, and charitable giving habits. You may have an opportunity to assist the client in maximizing planned giving, other investment vehicles, or retirement by recommending a Life Settlement in certain circumstances.

Who is a candidate?  You may View Brochure and request copies for your clients. Fill out a policy evaluation.

The financial professional can approach this responsibility with a methodology that includes the following five-step process:

  1. Inquire about life insurance (not managed in a trust or personal portfolio)
  2. Determine the suitability for a Life Settlement. Assess the client’s overall financial picture to determine whether the life settlement is an option.
  3. Analyze  the client’s probability for a life settlement
  4. Perform due diligence. Personally research the marketplace for a reputable life settlement broker /  provider backed by qualified funders or use the services of an intermediary who has the knowledge of this marketplace and the process expertise
  5. Insist on multiple offers. Pursue the highest market value for the seller  from the life settlement provider.

Life Settlements can Provide Solutions to Financial Planning Objectives

Personal Applications

• Fund a life insurance product that better suits current wants or needs
• Purchase long-term care insurance
• Purchase a survivorship policy
• Create liquidity to invest elsewhere
• Retirement living: independent, assisted, nursing home
• Estate size changes:larger or smaller death benefit to cover taxes
• Use the funds to take a once in a lifetime vacation
• Retire debts
• Create funds for a charitable gift
• Gift to a family member

 

Business Applications
• Key-man insurance is no longer needed after retirement
• Buy/Sell agreement is no longer needed due the sale of the company
• Purchase a minority interest in the business
• Bankruptcy creates the need for liquidity
• Retire a company debt

 

Go to our Whitepaper download page  for more information.

Lifetime Horizons can help to make the Life Settlement process run smoothly to meet your clients' financial objectives.

To discuss a case you are currently working on and obtain a free policy evaluation for your client, please call 800-430-8849.    

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