Helping Policy Owners
Life insurance is a critical part of financial planning. Advisors and agents help policyowners and their families throughout their lifetimes to ensure that loved ones are financially sound and protected. But the vast majority of life insurance is eventually lapsed or surrendered back to the insurance company for little or no value.
Financial professionals who advise and assist policyowners with life settlements are financial champions because every life settlement provides greater value to the seller than if they terminated the policy back to the insurance company. The average life settlement is more than four times the policy’s cash surrender value. That’s found money, and can be more valuable than the equity in a home. Seniors use their life settlement proceeds to reinvest in their retirement, pay bills, fund health care needs, or simply to enjoy life.
Helping Your Practice
Not only does every life settlement make a significant difference in the lives of seniors and their families, financial professionals who advise and assist policyowners about life settlements are able to “do well by doing good.”
The benefits of educating policyowners about life settlements for agents and advisors include:
- Re-Engagement with Existing Clients: Agents and advisors re-engage with their older clients when they discuss life settlements. The proceeds of a life settlement can be utilized to help seniors meet post-retirement financial needs, including investments, additional life insurance products, and immediate and long-term health care.
- Generational Practice Building: Almost all life settlements include contact with and involvement by the seller’s adult children. Life settlements provide financial relief to the whole family and help establish or retain a generational relationship with the adult children.
- New Relationships: Life settlements are a great way to help grow your practice. Discussing life settlements with seniors and connecting with other professionals about life settlements can lead to significant client – and revenue – growth.
- New Resources for Your Client … and You: Life settlements are “found money,” that can help seniors supplement their retirement investments. This means new income opportunities for you.
Life Settlements are in the Policyowner’s Best Interest
When thinking about helping a Senior policyowner with a life settlement, remember:
- Life settlements are a property right of the policyowner
- Life settlements ALWAYS pay policyowners more than if the policy is lapsed or surrendered
- Life settlements are well-regulated throughout the nation
- Life settlements may be suitable for certain policyowners
- Life settlement proceeds are tax-free for certain individuals
- Life settlements have been recommended by the NAIC as a way to finance long-term care needs
Life settlements are property, just like a home or a car. When someone moves out of their home, they don’t just give it back to the developer for whatever price the developer wants to pay; they sell it. We sell our used cars on the Internet to get the best price we can. Jewelry, art, and other property are routinely appraised to see what it’s worth.
Life settlements pay tens of thousands, sometimes hundreds of thousands of dollars to policyowners. It’s an amount that is ALWAYS more than what the policyowner would receive from the insurance company. Studies have documented that life settlements pay between four and 11 times more than the amount the insurance company would pay for it.
Older policyowners living on fixed retirement incomes may find it difficult to maintain an increasingly costly life insurance policy. Cash values that were once substantial are now either depleting or depleted. It could be that the policy no longer has a need, or a beneficiary, making the policy obsolete.
The state life settlement laws that blanket the nation have resulted in life settlements being among the safest financial services transactions for American seniors. Seniors who sell their policies receive a higher level of information and consumer protections than when someone buys a life insurance policy, or an annuity, or buy or sell virtually any other financial asset. Of the more than 466,000 consumer complaints received by state insurance regulators since the start of 2014, only two involved life settlements, according to national data.
If a senior cannot afford their life policy, or just doesn’t need it, a life settlement can be a suitable choice for some seniors. Getting the policy appraised – at no cost to the policyowner or advisor – is going to be a good first step for most.
Financial professionals of all stripes have duties of care and competence. Advising and assisting a policyowner about life settlements not only good business, it’s good practice.
Why LightHouse Life?
LightHouse Life’s team is committed to the highest standards of integrity in the life settlement market.
Among the key advantages to working with LightHouse Life are:
- Easy to Work With: Agents and advisors introduce policyowners to LightHouse Life and we take it from there. LightHouse Life’s dedicated team works directly with policyowners to get the information needed to evaluate the insured and the policies, and to offer policyowners a market value for their policies. Financial professionals act as an agent of LightHouse Life and simply make the referral and provide occasional nurturing.
- Fast: LightHouse Life makes offers to policyowners within a few days of receiving completed health and policy information, and most transactions can be completed within 45-60 day
- Consumer Protections: LightHouse Life far exceeds the minimum statutory requirements for life settlement transactions, providing enhanced consumer protections, additional consumer disclosures and affirmations and privacy protections that make working with LightHouse Life safe and secure for policyowners and advisors.
- Compliance-Focused: LightHouse Life ensures that agents and advisors, as well as their firms, are in compliance with insurance and financial regulations. LightHouse Life backs up this commitment by extending liability coverage and protection to the advisors and firms we work with.