(2 Minute Read)
Life settlements have proven to be a great way for seniors to build their nest eggs for retirement, or allow them opportunities to invest in more lucrative areas. But sometimes, life settlements can actually change lives, and it’s important to remember that.
For example, take a case recently shared by Robin S. Weinberger and Peter N. Katz. A woman suffering from ALS (or Lou Gehrig’s Disease) had a $100,000 Universal life policy. She and her husband—her primary caregiver—were nearly bankrupt. After selling their house and moving into a one-bedroom apartment, they realized they could no longer afford the premiums on her policy.
They inquired about selling the policy for a life settlement. When her life expectancy came back at about two years, they tried to encourage the husband to find another alternative for money, because he would likely receive a death benefit within two years.
They couldn’t do it, though. The couple needed the money in order to renovate a bathroom to make it wheelchair accessible and other small needs around the apartment. In the end, the couple received a life settlement of $58,000, and the husband told them, “This money will change our lives.”
Weinberger and Katz go on to mention the Chartered Life Underwriter (CLU) pledge:
“In all my professional relationships, I pledge myself to the following rule of ethical conduct: I shall, in light of all conditions surrounding those I serve, which I shall make every conscientious effort to ascertain and understand, render that service which in the same circumstances, I would apply to myself.”
It’s important to remember for all of us, whether we’re underwriters or advisors or simply handling life settlements, that this is an option that can change the lives of our clients for the better.
While the life settlement market exists, it doesn’t make sense to let a policy lapse or to surrender it for practically nothing. If you or one of your clients has a policy they no longer need, a life settlement may be an option to get worth from your policy. Complete our qualification calculator to see if it’s an option for you.