FINANCIAL ADVISORS/REGISTERED REPS

Financial advisors are using the life settlement option as part of a broader financial planning strategy. While a life settlement may be a smart financial decision, it may cause some trepidation for the policyholder. The client will want to know that they can trust their financial advisor to recommend the best course of action for meeting their developing financial requirements.

Financial advisors have a fiduciary responsibility to represent the best interests of the client. Through a life settlement transaction, financial advisors can help their clients tap into “found money” that may be hidden in unneeded, unwanted or unaffordable life insurance policies. However, life settlements are not for everyone. At AFC, we use the following criteria when working with advisors, producers and clients to make initial determination about the viability of a life settlement:

(1) The policy owner must have owned the life insurance policy for at least two years;
(2) The insured must be at least 75 years of age, 65 years old with some health issues, or any age with significant health issues;
(3) The policy must have a minimum face value of $50,000