CPAs are quickly realizing that life settlements can represent an incredible opportunity for their clients.
Whether they are representing individuals or business, CPAs looking to take their client relationships to another level should avail themselves of the invaluable knowledge base that Genesis already offers to the marketplace.
Case in point: for individual clients seeking a source of liquidity, the settlement option often represents a viable alternative to the sale of a traditional asset. This is because life settlements allow for immediate cash through the sale of the life insurance policy.
Clients need to know that the settlement option is often a smart choice financially, regardless of liquidity. Why? Think about all your clients who either no longer require a specific life insurance policy or can no longer afford the premiums. As their accountant, it is often your job to recommend for them more appropriate choices, choices that will protect both their cash flow and peace of mind. Having a trusted life settlement broker to partner with, allows you to explore those options with your client.
It is important that your clients don’t underestimate the value represented by the life settlement option. As is often the result after a buyout or merger, or the retirement of key executives, a business will allow a “key man” policy to lapse as the policy has done its job and is no longer needed. While usual procedures may sometimes include surrendering the policy to the life insurance carrier or even letting it lapse, your business clients count on you to let them know that there may be significant asset value in that policy today.
Not surprisingly, many financial professionals feel that part of fiduciary responsibility is the discussion of a life insurance settlement.
.Ask yourself the following:
- Do I have a client who does not need his life insurance policy anymore?
- Do I have a client who is having difficulty making the required premium?
- Do I have a client who may benefit significantly from liquidity?
- Do I understand all there is to life settlements?
- Do I need to understand this option more than I currently do?
To learn more, a conversation with Genesis is your next step.
