Financial Advisors Life Settlement
If you are a Financial adviser or planner and have senior clients that may benefit from a life settlement, contact Ideal Settlements today. Ideal Settlements offers financial advisers excellent solutions that are oftentimes overlooked. Ideal is an experienced brokerage firm that works with over 50 institutional buyers within the life settlement market. Over the last several years, life settlements have become increasingly popular due to higher payouts for the policyholder and high returns for the investor.
A life settlement occurs when the policyholder decides to sell their life insurance policy in the secondary markets; perhaps the policyholder can no longer afford the premiums or the beneficiary has passed away. The policyholder will be able to sell their life insurance policy for a percentage of the death benefit. The policy is purchased by the investor who will pay on the premiums until the policy matures or the policy owner passes away. A life settlement pays more to the policyholder than surrendering the policy back to the insurance company that issued it.
Over the last several years the market for investing in life settlements has become extremely popular amongst investors. The industry has grown to nearly $20 billion over the past couple of years. The demand for insurance policies has increased tenfold leaving a shortage of life insurance policies. As a result it has significantly increased the value of a life insurance policy in the secondary markets. At Ideal we understand a shortage of polices exists and we use this as a major factor when negotiating the highest payouts for our clients.
Financial advisors have a fiduciary responsibility when managing money and other assets for their clients. They are responsible for tailoring financial plans and making informed decisions based upon changing financial positions etc. This plan should be aligned with the financial goals and needs of each client. A financial advisor will frequently meet with their clients to determine if any adjustments should be made to the plan.
Some of the services a financial advisor will provide to their clients include:
- Plan for retirement
- Create or rebuild financial portfolios
- Help invest in the open markets
- Grow a business
- Family services - College tuition or children with special needs
A financial adviser may recommend a senior life settlement depending upon the financial needs for a client. Some of the most common reasons a financial advisor will recommend a senior life insurance settlement to their clients include:
- No longer can afford the premium payments
- Medical expenses
- The client has outlived the beneficiary
- Changes to the financial plan
- Expenses for long-term care
- Eliminate bankruptcy or debt
- Using money towards another investment product
- Family member in financial trouble
Financial advisers have recently discovered life settlements can create significant cash flow to their senior clients. Years ago a financial advisor may have recommended selling a policy back to the insurance carrier for a small fraction of the death benefit. Today that same policy is worth much more in the secondary markets.
The amount of money a client may receive through a life settlement will vary based upon several factors. The most common factor when determining a life settlement or viatical settlement (terminally ill) is life expectancy. The shorter the life expectancy, the greater the lump sum offered to the client. Other factors include the type of policy, age, insurance carrier rating and medical condition.
There are over 50 Institutional Buyers that evaluate life settlements. In order to maximize the full value of a life insurance policy it's always recommended to shop a policy through a network of companies. This will assure your client is getting fair market value for their life insurance policy.
If you are a financial adviser that is interested in learning more about the life settlement industry, contact Ideal today.
If you are a financial adviser searching for additional information regarding the life settlements within your state, please follow the following links: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming and the District of Columbia D.C.
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