A VALUABLE ALTERNATIVE TO LAPSE OR SURRENDER
A life settlement is a buyout of an existing life insurance policy for more than the cash surrender value and less than the death benefit.
"What's the best price I can get for my policy? If you’re using a life settlement broker, ask what bids were received and what steps the broker took to make sure you’re being offered the most competitive price available. If you’re approached by someone soliciting you to sell your life insurance policy, understand that person's role in the transaction: Are they a life settlement broker who represents you, or are they affiliated with a particular life settlement company? If the answer is the latter, the person might only obtain an offer from that company, making it hard for you to know whether you’re being offered a competitive price."July 31, 2023
Compliance officers have come to recognize that if life settlements are pursued for the right reasons, after a thorough review of all non-forfeiture options and suitability, a life settlement could very well be in clients' best interests. It is a viable exit strategy that should be disclosed in a comprehensive policy review in partnership with a resource that offers a compliance-centric process. However, broker-dealers do not just allow life settlements carte blanche. They put strict procedural guardrails in place to protect the company and their representatives from liability risk.
Ashar Group is an industry leader in compliance. We believe planning professionals need to be confident that they are associated with a partner who is fully aware of the complexities the financial community faces today - both legally and ethically.
Request the planning checklist for existing life insurance.
Their needs had changed, and they no longer needed the policy
They were able to uncover significant liquidity and fund their retirement.
Policy was underfunded and sitting in an ILIT
Eliminated future premium payments and used the funds for medical bills.
Policy was no longer needed for estate planning
Client was able to fund all lifestyle and caregiving needs.