Why Life Settlements Should Be Part Of Your Client Conversations

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Too many seniors let life insurance policies lapse or surrender them for pennies on the dollar.

As an advisor, you can help them uncover a better option: a life settlement.

A life settlement allows a client to sell an unwanted or unaffordable life insurance policy to an institutional buyer for more than the cash surrender value. The buyer takes over premiums and receives the death benefit when the insured passes away. Your client receives a lump sum — often 4 to 6 times more than the surrender value — and gets immediate relief from premium payments.

Here’s an example:
  • Policy: $500,000 Universal Life
  • Insured: 76-year-old female
  • Annual Premium: $12,000
  • Cash Surrender Value: $25,000
  • Settlement Value: $125K
  • Agent Referral Fee: $12,500

This example puts $125,000 in the client’s pocket — plus she stops paying $12,000 per year in premiums. That’s real money that can be used for retirement, medical costs, or gifts to family. Life settlements are not just a “last resort.” They are a planning tool that can add significant value, particularly for clients who:

  • No longer need the coverage
  • Struggle to afford premiums
  • Want to free up funds for other goals

Don’t let your clients leave money on the table. Explore a life settlement first. Call us today to help clients unlock hidden cash and boost your revenue.