Staying Informed as the Financial World Changes
As the baby boomer generation and their parents demographic grow, the number of people in the United States aged 65 and older is expected to be roughly 20% of the U.S. population.
Financial Advisors would be advised to make themselves familiar with the Life Settlement market and the Life Settlement process. This market will continue to expand gaining increased acceptance as an essential financial planning tool for high net worth individuals that no longer need their life insurance.
Life Settlements are not the best solution for everyone and can be a complex multifaceted transaction. Thus, an individual should not enter the Life Settlement market without qualified professional assistance. You have a fiduciary responsibility as their Financial Planner to keep your client informed of all their options.
In addition, providing your clients with the option of a Life Settlement will show you are staying informed in an ever changing financial world and giving the best and most complete advice as an adviser to your clientele. When acting in your clients’ best interests, you may wish to have their policies evaluated in the secondary market before they are surrendered or lapsed. This will allow your client to make an educated decision and know that they are getting the maximum benefit from the policy. The secondary market for life insurance policies is providing planners several options as to what can be done with the proceeds of a Life Settlement.
The following are a few examples:
- A more competitive policy can be purchased with the proceeds from the Life Settlement.
- Client can dump the money into a tax-deferred annuity for a retirement revenue stream.
- Long Term Care can be purchased.
- What are the client’s wishes regarding charitable giving?
- Would the proceeds from a Life Settlement help the client provide more effectively for the distribution of their estate?
Please contact the professionals at BB&G today to learn more about options regarding Life Settlements and ways to help your client.