When life insurance policyholders aren’t informed that a life settlement is an option for them, they could be missing out on a potential windfall. One study shows that 79 percent of seniors wish that their financial advisor had educated them about life settlements. So what does an advocate need to understand about the math behind life settlements to provide responsible guidance for their clients? This paper will serve as a primer for anyone seeking to give accurate financial advice to seniors.
The central topics covered in this paper include:
- Depending on the longevity of the ensured and the structure of the policy, the economic cost of foregoing a settlement could exceed the death benefit.
- An advisor can help a client identify the optimal window of opportunity for a life settlement, as determined by the level of health impairment and the cost of insurance.
- By considering the value of a policy, the policyholder’s health, future premium payments and the interest on future premiums, seniors can get an accurate estimate of their policies value in a life settlement, and those funds can be used to mitigate health care or other retirement costs.
Advocates are under an obligation to know as much as they can about life settlements so that their clients can pursue the best possible option for their life insurance policies. If you want to know more so that you can thoroughly inform the clients who trust you to represent their best interests, fill out the form to read the entire paper.