Financial Planners
As a financial professional, you have a fiduciary responsibility to represent your clients' best interests by advising them on all relevant alternatives. You can assist your clients by exploring all the options that exist when they are considering an exit strategy for any life insurance policy.
Financial professionals are quickly recognizing the importance of this new option as seniors now have a competitive and more profitable alternative to policy lapses, cancellations and surrenders. There are clear financial benefits to a life settlement, including:
- Eliminating premiums on obsolete or unaffordable life insurance policies
- Generating more cash than if the policies were surrendered
- Using the funds from a dormant asset to better serve current financial goals
- Providing cash for philanthropic causes, gifts, medical expenses or any other purpose
- Using proceeds to purchase a more efficient, cost-effective life policy
Aside from fulfilling a fiduciary responsibility, the benefit to the advisor is that the proceeds from a life settlement can be used to make additional investments - clearly a win-win situation for all parties involved.
Questions to ask your clients
The following questions are common to ask your clients prior to determining whether a life settlement may be a viable option:
- When was the last time you had your life insurance policy reviewed?
- Does the need for the policy still exist?
- Have you had any significant life changing events?
- Is your policy in danger of lapsing or being surrendered?
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