Insurance and Financial Professionals

Insurance and Financial Professionals

magna licensed life settlements map1 - Insurance and Financial Professionals
*5 states require insurance carriers to disclose life settlement option to policy holders considering lapsing/surrendering.

*CA and NH require carriers to recommend that policy holders consult a licensed insurance or financial advisor if considering lapsing or surrendering†

Life Settlements Can Provide You With Sales Opportunities

Life settlements provide your clients with the opportunity to monetize an unwanted or unneeded asset.  The life settlement market often provides 4–5 times the surrender value of the life insurance policy.

Consider the following case study:

life settlement policy case study - Insurance and Financial Professionals

Here the client no longer needed the life insurance, and was going to have to pay a large premium to keep it in force.  Rather than accept $53k in surrender from the insurance company, the client received nearly $250k for the policy through a life settlement. This freed up the client from paying future premiums as well.

This creation of liquidity in a client portfolio can provide an adviser with an opportunity to consider other products that might be more appropriate for the client portfolio.  Moreover, educating your client about the life settlement market is the right thing to do.

A recent study by ICR Customer Market Research shows that 55% of seniors have lapsed a life insurance policy, and that 90% of them would have considered a life settlement had they known about the market.  That study also showed that 79% of clients feel that their advisers should inform them about the life settlement option.  Those advisers with designations such as the CFP (Certified Financial Planner) and CLU (Chartered Life Underwriter) also should consider the fiduciary obligation to help clients understand all options.

Do not miss an opportunity to create liquidity for your client through a life settlement. 

Ready to see how life settlements can be integrated into your current business?   Already have a client that may have a life settlement? Complete our questionnaire now or contact Magna and a representative will get back to you within 24 hours.

†California Insurance Code §10113.2.(j) and New Hampshire statute 408-D:8 Life Insurer Disclosure to Viator


Magna believes in the importance of a streamlined closing process. Magna must utilizes state-approved contracts and conducts rigorous due diligence.  Visit Our Process and Forms Center to understand how we work.

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