Many of the best life settlement cases come by way of a referral to an insurance agent from an accountant, attorney or trust officer. Working with advisors can often generate a steady stream of prospects for new life, long term care, disability income and medical insurance, in addition to life settlements.
Commonly, advisors, like accountants, attorneys and trust officers become the primary trusted member of a client’s financial team. Forming a relationship with an advisor brings you instant credibility with their referrals.
Advisors become receptive to your ideas and count on you to keep them up to date on insurance developments so they’re are not caught off guard by someone else.
For example, making sure they know there is an alternative to lapsing or surrendering a life insurance policy gives them additional information to help their clients maximize the value of their assets. This give-and-take becomes the basis for a good relationship and, most importantly, benefits the client.
Where can things go bad? Frequently, advisors know:
who is retiring
who is getting divorced
whose spouse passed away
who is in financial trouble
who is selling a business
who can’t afford their insurance
who has a need for additional income; and
who needs funds to pay for long term care.
All these circumstances can trigger the lapse or surrender of a life insurance policy. Unfortunately, that happens too often before the option of a life settlement is investigated because so many advisors are not even aware that life settlements exist.