Life settlements, the sale of life policies in exchange for cash payouts, are an extremely viable option that have saved many senior citizens from lapsing policies and unexpected financial strain. Many financial advisors are still; however, not educating their clients on the subject. No one wins in this scenario as the financial advisor loses out on commission and potential investment opportunities and the client is stuck with a policy instead of liquid assets. Here are the top three reasons why financial advisors need to become more aware of life settlements, a process that benefits all parties:
- There is a retirement crisis, meaning that individuals are simply unprepared for retirement. Of those questioned, 26% of people aged 50-64 said they have zero retirement savings. 57% did not have more than $25,000 saved. This is a huge problem, but a life settlement could quickly alleviate the pressure by providing an immediate cash payout.
- Policyholders who surrender their policies receive a fraction of the amount they would otherwise receive from a life settlement. If a financial advisor were there to educate the policyholder, he or she would most likely choose to proceed with a settlement.
- If a life settlement could potentially benefit a client, it is the financial advisor’s responsibility to make that client aware of the option to sell.
For many policyowners, education is the key to making decisions that will maximize their assets and provide for their financial goals. To learn more about life settlements and how to offer this valuable option to your clients, visit genesislifesettlements.com or email us directly to talk one-on-one with a Genesis advisor.