Life Settlements offer a unique opportunity to both the policyholder and the Advisor. We’re focused on educating and assisting Professional Advisors in the use and implementation of innovative Life Insurance and Life Settlement strategies.
As circumstances change, the ability to obtain cash from the sale of a life insurance policy can be particularly valuable. Because Life Settlement proceeds are unrestricted, they can be used to fund a wide range of financial and estate planning objectives for your client.
We represent the policy seller, whether that’s an Individual, Trustee or Company, acting as their fiduciary, with our primary goal being to maximize the amount paid to your client at the end of the transaction while efficiently managing the documentation process.
There’s tremendous opportunity to service your client as the amount of policies that are lapsed each year by people over age 65 is astounding:
- More than 250,000 policies with a combined face value of more than $57 billion are lapsed or surrendered each year - and if term policies are added, the total is more than $110 billion per year(Life Health Pro)
- That’s 685 policies lapsed each day that may have additional value to your client.
This means that there is a real opportunity to separate yourself from other Advisors since most do not have any real knowledge, or only possess an outdated understanding regarding life settlements.
- Fully one-third of the advisors surveyed thought that life settlements were only appropriate for people with a terminal illnesses or some other ‘special circumstances’
- 89% have never recommended life settlements to their clients even though 48% self-described themselves as ‘familiar’ with the concept/process
- A survey by the Insurance Studies Institute reported that less than 50% of seniors were aware about the option to sell their policy, but, 90% who had lapsed a policy would have considered selling it if they had known a life settlement was an option
Take the Life Settlement L.E.A.P
It’s Legal – In 1911, Oliver Wendell Holmes ruled that Life Insurance is a ‘capital asset’ and therefore could be sold, just like any other asset.
It’s Ethical – Advisors have a fiduciary obligation to provide their clients with all available information, choices and options.
It’s Approved – 45 States allow or regulate Life Settlements, covering 90% of the US population.
It's Profitable – On average, the purchase price is 4x more than the Cash Surrender Value(1) and if it’s a Term Policy, it might be worth more than the client spent over the lifetime of the policy.
Ultimately, the final monetary settlement amount is determined by many factors including the size, cost and type of policy, as well as the age and relative health of the insured.
Over the years, we’ve worked with many different Professionals and we look forward to working with you to maximize the value of your clients’ life insurance policies.
Certified Public Accountants (CPA)
Corporate Advisors, Including M&A, Restructuring and Bankruptcy
Private Equity & Hedge Fund Professionals
Charitable Organization and Non-profits
Life Agents/Brokers/General Agents (GA)
Estate Planning Professionals
Attorneys (Trust & Estate, Divorce, Corporate, Bankruptcy)
Benefits to the Advisor:
Use the proceeds to issue replacement coverage, annuities or other appropriate financial products.
Offer a new value-added service to your clients which differentiates you from your competition.
Receive compensation from the Life Settlement transaction.
Reduce lapse rates.