While most financial advisors and life insurance professionals strive to do the right thing for their clients, there are some cases where they may fail to do all they can, especially for their elderly clientele. When it comes to life insurance policies, they leave a lot of money on the table. Over 10% of advisors have ever guided a senior client through a life insurance settlement. This would yield far more cash value than accepting a lump sum liquidation or, at worst, allowing the policy to merely lapse. Indeed, awareness of the process is as low as 40% within the financial industry itself.

Suppose a client near the end of life is still paying heavy premiums for a policy that no longer serves them or their family. In that case, you, as a financial advisor, may be failing your client and missing important advantages for yourself. These are significant opportunities for the growth and development of the advisor’s own business — your business.

Here’s why.

Opportunities for Financial Advisors and Their Clients

As many as 21% of seniors report being critically unprepared to retire. They have virtually nothing saved for their post-working years, and if health issues add a further financial strain, they’re not sure where those funds will come from. Furthermore, most of them resist the idea of burdening their family with these needs.

If these clients have a life insurance policy, the solution may be right in front of them. Such a policy can be offered on the market for a life insurance settlement. The cash settlement may result in up to eight times a mere policy surrender value through a vigorous bidding process. The successful bidder (usually an institution) becomes the beneficiary of the entire policy value. The client receives much more return on the policy than would be realized through a lump sum settlement with the issuing insurance company. And that client’s financial advisor gains some important kudos and a reputation of providing stellar service to clients. There’s no greater business enhancer than enthusiastic word of mouth.

A true win-win-win.

The process is not only completely legal, but highly regulated in most jurisdictions. It’s compatible with taxes since only the part that is reported as profits are taxable. And failure to offer this solution to a client who is prime for such a transaction can be actionable as malpractice. As the financial advisor of record, it’s your responsibility to ensure that your elderly clients are well taken care of.

The vital component in this process lies in establishing a meaningful partnership with a quality firm that is licensed to broker life settlement agreements. The premier broker in South Florida is Life Insurance Settlements of Pompano Beach. Life Insurance Settlements can submit a life insurance policy to a lively, competitive bidding process where your client’s highest value would be realized. This is the kind of service that is expected from a trusted financial advisor and remembered by clients and families for generations to come.

Feel free to call Life Insurance Settlements with any questions you may have.

Rob HaynieMarch 1, 2022

Rob Haynie

Mr. Haynie has been a major influence on the evolution of the life settlement industry during his almost twenty-seven year career of proactive involvement. Not only has he been directly involved in negotiating and settling several thousand contracts, he also presently serves on the board of directors of the Life Insurance Settlement Association (LISA) and is a charter member of the Association’s PPC committee, which is charged with the regulatory and legislative activities of the industry. Additionally, he has served on both the Customer Advisory Board (CAB) of ITM/TwentyFirst Services and the Advisory Board of the Insurance Studies Institute (ISI). He was named one of the top 10 most influential people in the life settlement industry worldwide. Mr. Haynie, an Alumnus of Florida State University, currently holds a Life Agent License with Viatical Settlement Broker Appointment for LIS and has spoken at almost every life settlement industry meeting or conference, published articles on the subject and has given many educational webinars as well.

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