High-net-worth and senior clients rarely rely on a single financial advisor. Their financial lives touch the desks of CPAs, estate attorneys, insurance agents, financial advisors and trust officers. Each brings specialized expertise, but the lack of coordination often leaves valuable options undiscovered. When advisors don’t connect, policies lapse, planning gaps go unaddressed, and everyone — including the client — misses opportunities.
Life settlements create a reason for a client’s advisors to work together. When a policy no longer serves the client’s purpose, this decision ripples across tax plans, estate planning documents and retirement strategies. Yet, without a system for referral and collaboration, the process stalls. The result: the client misses out on the financial flexibility a life settlement can provide, and the advisors lose a touchpoint that could deepen their professional relationships.
Read on to see how a life settlement referral network can help your clients create new opportunities, and how a coordinated approach can benefit your practice and your clients.
WHY LIFE SETTLEMENTS ARE A CROSS-DISCIPLINE PLANNING MOMENT
Selling a life insurance policy affects more than just the policyholder’s cash flow. It touches every facet of planning:
- Tax management
- Estate planning
- Insurance coverage
- Liquidity
No single advisor controls this decision, which is why cross-discipline referrals among financial advisors and their peers matter. When a policy lapses, the outcome is predictable: clients lose asset value, and every advisor misses an opportunity to serve.
A successful life settlement, on the other hand, builds connections. The clientgains financial flexibility, advisors help preserve client wealth, and referring partners increase their value to the client. The foundation for this is a life settlement referral network, where every advisor knows when and how to connect the client to the right resources.
A life settlement partner program that supports collaboration among CPAs, attorneys and insurance professionals provides every advisor access to policy review, evaluation and transaction support without requiring additional licensing or complex onboarding.
KEY PLAYERS (AND WHAT EACH BRINGS TO THE TABLE)
Every advisor in a client’s circle has a unique vantage point:
- CPA: Notices rising premium payments and the mounting tax drain. They also add value by optimizing tax outcomes after a life settlement and ensuring the proceeds are managed efficiently.
- Estate attorney: Identifies when a policy no longer serves its original estate planning purpose. Perhaps the estate tax threshold has changed, or the family’s needs have evolved. Estate planning can also identify when collaboration between estate planning and life statements can make the most of an underutilized asset.
- Financial advisor: Monitors a client’s retirement income, cash flow and liquidity needs. By identifying income gaps, an advisor may use a life settlement to unlock a non-traditional funding source and address client goals in real time.
- Insurance agent: Recognizes which policies are on the verge of lapsing or underperforming. Furthermore, they provide technical knowledge about insurance carriers and various policy conversion options.
- Trust officer: Oversees underused or overfunded Irrevocable LifeInsurance Trusts (ILIT) assets and ensures compliance with fiduciary duties. They also add structure to the process by reviewing policies, keeping transparent records and holding all parties accountable.
When each professional knows how to build a referral partnership in finance, everyone benefits. The client receives holistic advice, and each advisor is part of a professional network for senior client planning that uncovers value where others might miss it.
HOW TO BUILD A REFERRAL NETWORK AROUND LIFE SETTLEMENTS
By following these steps, advisors can form a network where value flows freely among them and their clients alike.
- 1. Identify partners serving similar clients: Start by connecting with CPAs, attorneys, insurance agents and advisors who work with clients age 65 and up, high-net-worth individuals or business owners.
- 2. Create a shared policy-review checklist: Develop a list of triggers, such as policy anniversaries, significant health changes, or retirement milestones, that prompt a joint review.
- 3. Hold joint planning meetings or roundtable consults: Invite partners to roundtable sessions where each brings their own perspective. These meetings reveal gaps and opportunities that may not surface in siloed discussions.
- 4. Clarify roles and responsibilities: Determine who evaluates tax issues, who reviews the legal structure and who orders the policy appraisal. Use a licensed life settlement broker as a neutral third party to manage the process.
- 5. Leverage life settlement partner programs: Collaborate with providers that offer structured programs for advisor referral strategies in 2025 and beyond, ensuring seamless compliance, compensation and education.
Bringing all these steps together turns what was once a disconnected process into a true life settlement referral network.
HOW REFERRAL NETWORKS DELIVER REAL CLIENT OUTCOMES
When advisors coordinate through a structured life settlement referral network, results shift from hypothetical to tangible. Here are some common real-world scenarios that show how collaborative action can transform what might seem like a dead-end insurance policy into new value, for both clients and advisors.
- During tax season, a CPA notices a client dropping high premium payments on an aging policy. The CPA refers the case to a financial advisor, who works with a life settlement broker. The result? The client receives $150,000 through a life settlement, far exceeding the cash surrender value.
- An estate attorney preparing to close an ILIT recognizes that a policy no longer supports the client’s goals because of updated estate tax laws. Instead of surrendering the policy, the attorney facilitates its sale, preserving more value for the client’s heirs.
- A registered investment advisor helps a retiree manage retirement income taxes by converting an unneeded life insurance policy into cash through a life settlement. The proceeds provide non-market, non-retirement-account liquidity — giving the client more flexibility to control when and how they take taxable IRA withdrawals. A life settlement can give retirees a new source of liquidity outside their retirement accounts, helping advisors manage taxable withdrawals and reduce pressure from RMD-related income.
- An insurance agent flags a soon-to-lapse $1 million policy and refers the client into the life settlement revenue-sharing pipeline. Instead of letting the asset expire with no value, the client receives a six-figure payout, and the agent gets positive recognition for their proactive planning.
Each scenario demonstrates how collaboration across disciplines delivers outcomes no single advisor could achieve alone. They also indicate how a unified strategy delivers results, deepens client trust and keeps every advisor indispensable in the planning process.
COMPLIANCE, COMPENSATION AND TRUST
Transparency is the backbone of any professional referral network. Most states allow referral fees or commissions, provided all parties disclose their compensation clearly. Life settlement brokers manage the paperwork and track every stage of the settlement process.
No advisor needs to hold a broker’s license to participate. Referring clients to a qualified broker demonstrates a commitment to thorough, client-centered planning and upholds the highest standards of fiduciary care.
Clients recognize the difference. When every advisor contributes to their financial security, trust grows and loyalty deepens. Open communication and full disclosure are what set leading practices apart.
THE FUTURE OF PLANNING IS COLLABORATIVE
Life settlements can do more than unlock the cash hidden in an unneeded life insurance policy; they can also build lasting relationships among the professionals who serve seniors and high-net-worth clients. Advisors who make collaboration part of their practice retain more clients, uncover hidden assets and add value at every step.
Every policy review is a chance to forge stronger referral partnerships and deliver more holistic service. The next time a policy seems ready to lapse, treat it as a chance to expand your professional network and build new revenue streams. The next referral might be the trigger that helps your client meet a long-term goal while rewarding every advisor involved.
Want to explore adding life settlements into your cross-advisor planning process?Our broker team provides free policy valuations and professional referral resources. Contact Life Settlement Advisors to learn more about building your life settlement referral network.
