The Benefits of Offering Life Settlements

(4 Minute Read)

Life settlements offer your clients financial stability and a much-needed cash injection during the often-unstable years of  retirement. But what about for you, as a financial advisor? Aside from providing your clients with peace of mind, what bonuses and opportunities do life settlements provide you and your bottom line? It may be surprising to hear, but there’s just as many – if not more – benefits for your business.

Receive Commission

The process of selling a life settlement on behalf of your client is complex, but overall worth it. You’re helping to create a revenue stream for individuals navigating the waters of retirement, a time in which they’re living without a paycheck for the first time in their adult lives. So, during this intricate transaction, it only makes sense that you should be fairly compensated for your efforts. Not only will you continue to receive renewal commission on the sold policy, but you’ll also receive commission checks at the time of sale and on the conversion from term to permanent insurance.

Build Trust

Your clients are your most important asset, and you’ll do anything you can to let them know you’re there to take the best care of them possible. Though the concept of life settlements may feel like a touchy subject, the ultimate result that comes from making the sale will be nothing short of astonishing. When you show them how you can  turn an unwanted and non-liquid asset into cash you’ll seem like a magician, and they’ll truly realize that you have their best interests at heart.

Sell Additional Products

As a financial planner, your talents and abilities extend far beyond insurance policies and life settlements. But consider this process to be a stop along the way toward creating a diverse and robust portfolio for your client. Once the  policy has been sold and the cash settlement has been delivered to your client, they can choose to reinvest it into stocks, bonds, or real estate, based entirely off of your direction and suggestions.

Build your Business

Because life settlements are such simple solutions for creating a revenue stream, your clients will be impressed by your problem-solving skills as well as your attention to their needs. For elderly clients, the idea of a recommendation or review is important, as they come from an era before sites like Yelp or Angie’s List made it available as an online resource. The immediate and long-lasting benefits that your clients will receive when they cash in an unused life insurance policy will give them the confidence to recommend you to their friends, family, and neighbors. What better advertisement could you hope for?

Though it may be a delicate conversation to have with your clients, life settlements are ultimately a deft and thoughtful solution for retirees experiencing issues in revenue and cash flow. Pitching these to your clients will provide you with adequate compensation, allow you to build trust and your business, and eventually diversify the portfolio of your client. If you need any guidance getting involved in life settlements, don’t hesitate to contact Life Settlement Advisors today.

Want to learn more about offering life settlements? Download our guide, Serving Senior Clients: Turn High Life Insurance Premiums into Financial Liquidity.

Case Study:

Tom had a corporate owned $1 million term policy that was about to expire. The need for the coverage no longer existed and Tom planned to let the policy lapse. Tom’s financial advisor knew Tom was not in the best of health and the policy could have value in a life settlement and convinced Tom to explore selling his policy.

Tom sold his policy for $300k. His financial advisor was paid on the term conversion, the life settlement case and Tom asked his advisor to invest the $300k for him.

Leo LaGrotte
llagrotte@lsa-llc.com
317-863-5936

Download our free resource, Serving Senior Clients, for more information about how you can unlock a powerful new source of financial liquidity for your clients today.

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