While direct advertising has boosted consumer awareness, it has also created some confusion related to who represents the policy owner in a life settlement transaction. In the 07/31/2023 memo to seniors, “What You Should Know About Life Settlements”, FINRA has provided consumers with information that will help them understand how to protect their best interests and make informed decisions when considering selling their life insurance policy for more than the cash surrender value (CSV) and less than the death benefit. All types of policies, including convertible term insurance, may contain significant value beyond the CSV that can be monetized through a life settlement. According to FINRA, a life settlement might make sense if the policy is no longer wanted or needed - or if it's no longer affordable and the policy owner is willing to give up or replace the coverage. Even then, however, proceed with caution.
5 Key Takeaways about Life Settlements from the FINRA Bulletin
Ashar Group and our FINRA registered broker-dealer relationship, Equus Financial Consulting, work together as an advocate for policy owners and advisory teams who are looking to access the life settlement market with a deliberate and conservative approach. The name Ashar was selected for our company at inception in 2003 as it was one of the 12 tribes from the bible that was known for being virtuous in its action and to “do what is right and you will be blessed.”
Ashar Group is a nationally licensed life settlement firm that protects the best interests of policy owners by creating a competitive policy auction to deliver the best value to the seller. Ashar Group does not sell life insurance, manage assets, or purchase policies. We are an independent resource for fiduciary advisors and their clients specializing in life insurance valuation for planning purposes.
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