Life settlement market growth coupled with more aggressive mortality tables, lower insurance premiums, and more competitive insurance products have opened up great opportunities for agents with senior clients to liquidate existing life insurance policies and purchase comparable coverage with reduced or eliminated premiums.
What if you could offer your client a 25% reduction in annual premiums on a new policy with similar coverage? Would that be interesting to them? Would writing the more beneficial coverage be interesting to you? A life settlement can liquidate your senior clients existing policy for multiples of the surrender value and the proceeds can be used for anything, including more competitively priced insurance and financial products.
Don't forget, clients considering surrender, lapse, and 1035 exchange should always have a fair market valuation performed.