...And the youngest of them turn 61 this year.
As the financial landscape continues to evolve, so too must the approach of today's financial advisor. Gone are the days when retirement planning stopped at age 85. With more clients living into their 90s and beyond, comprehensive planning must now stretch across longer time horizons. The means anticipating new risks, uncovering new opportunities, and using tools like life settlements to help clients maximize their long-term financial security.
Advancements in healthcare, improved lifestyles, and greater awareness of wellness have all contributed to a significant rise in life expectancy. According to a recent article, many clients - especially those in higher-income brackets - have a very real chance of living into their 90s or even longer. This longevity shift can strain retirement income projections and long-term care strategies if not properly considered.
Advisors can no longer plan to age 85. Retirement strategies must now account for 30 to 40-year retirements, demanding smarter planning, more flexible assets, and more nuanced conversations with clients.
Living longer is a gift - but it comes with a price tag. Increased healthcare costs, long-term care, inflation, and the risk of outliving assets are very real concerns for retirees. Clients fear becoming a financial burden to their families or having to sacrifice quality of life late in retirement.
It's crucial for advisors to start the longevity conversation early. Educating clients about the financial realities of extended lifespans can help them make more informed, proactive decisions. It's also a natural segue into evaluating underutilized assets that could support their long-term needs, such as life insurance policies.
An often overlooked but powerful tool in the longevity toolkit is a life settlement - the sale of an unwanted or unneeded life insurance policy for a lump sum that exceeds the cash surrender value (and is less than the death benefit). For clients in their 70s, 80s, and even 90s, this can be a strategic move that unlocks hidden value in a policy that no longer fits their goals.
Consider a client who took out a large policy to protect a growing family or business, but now finds those needs have changed. Instead of lapsing the policy or surrendering it for minimal value, a life settlement can provide immediate funds that support long-term care needs, retirement lifestyle, or estate planning goals.
Clients are often unaware of the option (or are duped by direct-to-consumer advertising), and their advisors are in the best position to educate them. When integrated into a comprehensive plan, life settlements can:
Advisors who ignore the longevity risk are not just missing a piece of the puzzle, they are missing a core component of modern financial planning. By acknowledging longer lifespans and incorporating strategies like life settlements, advisors can offer peace of mind and financial confidence that lasts a lifetime - and beyond.
As the industry continues to shift, advisors will stand out not just for managing assets, but for managing expectations and delivering solutions that evolve as life gets longer.
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.
Your client’s life insurance policy may be the most valuable asset they own.
Seniors in retirement often drop their life policies. The reasons are many; the original need may no longer exist, they may need to eliminate expensive premium payments, or they just need some additional liquidity to help with medical costs and retirement needs. There could be a better way...
A life settlement is the sale of an existing life insurance policy for more than the cash surrender value and less than the death benefit.
Five Common Life Settlement Scenarios:
Who has the best chance of qualifying for a life settlement?
Anyone age 65 or older who has developed health issues since their policy was issued and owns a universal life or convertible term insurance policy has a high probability of benefiting from selling their policy. Policies with a death benefit of $250K or more can qualify. Even policies used in estate planning and business protection with death benefits from $2M - $100M can qualify. Younger policy owners with serious chronic illnesses can also explore the life settlement option. There are many scenarios where a client could qualify for a life settlement.
PRACTICE TIP: Never surrender a life insurance policy without first checking for life settlement value!
Ashar Group is a nationally licensed life settlement firm that acts as a fiduciary to protect 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, management assets, or purchase policies. We are an independent resource for fiduciary advisors and their clients specializing in life insurance valuation for planning purposes. Contact us today.
The American College | Center for Retirement Income
The American College | Center for Retirement Income
The American College | Center for Retirement Income
The American College | Center for Retirement Income
The American College | Center for Retirement Income
