Adult children: your new market

3. Your clients’ adult children may be unaware that a policy exists.

A conversation about old life insurance policies can inspire parents and children to have a conversation about existing documents and the need for generating new coverage. This is important for estate and financial planning. Having this discussion within families tends to lead to greater preparedness and understanding about options for the future. Being the advisor that generates this discussion for families could be very fruitful for you.

If children are managing the finances and are unaware of the policy existence, the chances that it will eventually lapse due to non-payment are high. In fact, even if children are aware of the policy, they might initially see the benefit in lapsing or cancelling the policy to save on premium in the short term. Start a conversation about how much more beneficial a life settlement offer can be and cement your role as the trusted advisor.

4. Life settlements can be a good way to resolve business needs.

If the aging parent has had to step aside in a family business to tend to medical issues, there may be a cash flow situation putting the company in peril. Many family members are often hesitant to talk about any options that result in the loss of a business developed by parents. If there’s a cash value policy in play (particularly if it was purchased for business needs), there’s value in using a life settlement for the policy to strengthen the business in the short term, or at least stall for a few months to give family the time to evaluate options. Perhaps the family no longer has the need for the business policy, which will help increase cash flow in the short term and allow the funding for new plans or personal health care.

5. Life settlements allow for patient care and continued life.

Many adult children have stepped in to provide the care needed for these parents, but this is at the peril of their own employment and puts additional stress on their own family relationships. A lump sum with the opportunity to use those funds for home care of a family member gives the flexibility and peace of mind moving forward. Without the financial assistance of this lump sum, many families find it difficult, if not impossible, to manage the rising costs of private in-home care.

The bottom line is that adult children of aging parents with needs are looking for two things: solutions and flexibility. Most may be unaware of their options, even if they have life insurance policies for themselves. Assisting an aging parent is a challenge that many are prepared to take head-on, but there are increased difficulties associated with this. Caught up in a busy whirlwind trying to manage all these responsibilities, adult children will be both grateful and relieved to hear some options from an experienced professional.