In an extremely competitive insurance landscape, protecting the client by ensuring they get fair market value in a Life Settlement should be the foremost priority in any advisor’s mind. Yet far too often, unsuspecting clients and their advisors are taken advantage of when they knowingly participate in a process that does not secure the fair market value of a policy. The “one bid should do it” doesn’t leverage the competitive bidding process to make sure they receive the most aggressive bids possible. If you don’t implement a process that obtains multiple bids, then it’s likely the client will get the short end of the stick, possibly leading to liability for the advisory team.
That’s why it is extremely important for all types of advisors to realize the possibilities of getting a SMV®, Secondary Market Valuation, of their clients’ life insurance. The SMV® incorporates the impact of obtaining a variety of competitive bids from a multitude of prospective institutional buyers. The only way to determine fair market value is by creating an environment for this competitive auction bidding process. An experienced life settlement broker has the knowledge and experience to make this happen.
If you think it would be prudent for your client to pursue a life settlement, then talk to a secondary market specialist. You can also go to https://ashargroup.com/quiz/ to take the first steps in determining if a policy may qualify for a life settlement. It only takes a minute, and it could help generate the short-term liquidity today to solve retirement and planning problems clients continue to face in these economic times.