Financial Professionals

Financial professionals do everything in their power to ensure they attend to their client’s needs, often at a times that are emotionally, physically, or psychologically taxing for their client. As a financial professional, you aim to make any financial engagement attractive to all parties involved, with the goal of preserving and often expanding your client's estate. If you stick to this principle you can be confident in your client’s continued trust.

Now that a safe, regulated secondary market exists for life insurance policies, your clients can generate a substantial lump sum payment that you can help them allocate judiciously in their financial plan. The capital they retain from selling their life insurance policy can not only address their immediate needs but can also serve to mitigate any financial reliance on their children or grandchildren. You can help your client generate a significant amount of capital that will boost their liquid assets.

Irrevocable Life Insurance Trusts

Policies held in ILITs, or Irrevocable Life Insurance Trusts, make up a large part of life insurance that is reviewed for life settlements (or sale of a life insurance policy). Common scenarios include an under-performing life insurance policy suddenly needing premiums payments, with the risk being that if the premiums were not paid, the policy would lapse. Clients then seek guidance from professionals to help them determine what the best course of action is – to pay the premiums and fund the policy, or sell the policy for the maximum possible gain.

Get a Reliable Evaluation

Does your client really need their policy? To answer this question, you have to determine whether the reason why they bought the policy in the first place meets their current financial and estate planning needs. If not, it would be prudent to determine if the policy has more current value in the life settlement market, than the cash surrender value.

ALIR has robust turn key systems in place that will help you evaluate the the life insurance policy, and evaluate its potential value in the secondary life settlement market. Whatever the result of the evaluation is, you’ll be able to advise your client with confidence. This will help you limit your liability and exposure, while at the same time providing your clients with the sound advice that they need and expect.

Life insurance policies are financial assets and property. Would you advise your client not to appraise the value of potentially valuable artwork, jewelry, or other property? Of course not. You would insure that your client was aware any potential asset values, so they would have a comprehensive overview of their financial options. Life insurance policies like many other assets can have a intrinsic market value.

The financial and estate planning industry can be complicated and nuanced. The last thing you want to be is unprepared or lacking adequate information. Monitoring and tweaking your client’s financial plan often involves professionals from several different disciplines. ALIR will help guide you through the life settlement process. Our expertise will ensure that you understand the process and can give your clients consistently effective guidance.

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