Fresh Financial Data May Reveal Unnecessary Life Insurance

Now that April 15 is a fading memory and summer is heating up, it’s a great time to make sure that all of you are aware of life settlements.

This is the time of year that you are most likely up to date on your clients’ finances and any significant changes that may have occurred over the past year.

Especially if you yourself have focused on areas of financial services other than life insurance, you may not realize that life settlements can be a great alternative to the lapse or surrender of a life insurance policy, or, perhaps you have minimal knowledge and don’t give this transaction the attention that it deserves.

As a result, lots of potential cash gets missed out on.

Because you are now most current on your clients’ financial pictures, it’s the perfect time to familiarize them with the various situations where a life settlement could be beneficial:

• Cash-flow issues.
• The sale or termination of a business.
• Bankruptcy or an adverse change to a client’s financial situation.
• The death of a spouse or other intended beneficiary.
• The loss of a job.

Additionally, in 2023, the estate tax exemption is $12.92 million for individuals and, with portability, $25.84 million for married couples.

As a result, clients may have a significantly reduced estate tax liability.

Many have purchased life insurance policies to offset estate taxes. They may no longer need as much protection against that cost. These unneeded policies are frequently great opportunities for life settlements.