Operating in the best interest of your client will always be advantageous.
These individuals are looking for monetary advice that will benefit them in their golden years of retirement.
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Deciding if a life settlement is the right choice for your client, however, is not an easy task. In order to find out, your job as an industry professional is to guide clients in the right direction by advising them on the advantages and disadvantages of making such a big decision.
There are numerous benefits to deciding whether a life settlement is right for your client, but many advisors fail to recognize this as even an option. Opting for a life settlement is advantageous for your client when they no longer need or want their life insurance policies. When they do not want their policy to lapse either, a settlement can be a good option.
After so many years of paying into a policy, a large value has probably accrued. To let it lapse or become terminated is a seriously uneconomical decision, especially when there are more lucrative options on the table.
The hidden value in unwanted life insurance policies
Settling a life insurance protocol isn’t only advantageous for your client, it boasts benefits for financial professionals as well. When liquidity becomes available to your client once they receive their lump sum, new options open up that could help in supplementing retirement pension, pay for medical bills, and assist in long-term living expenses.
As a financial advisor, you may advise your client to re-diversify this lump sum into another asset or holding. When financial professionals are knowledgeable in the field, they know that a life settlement transaction results in benefits for both parties: the client as well as themselves.