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May - June, 2006 |
Vol. 1, No. 1 |
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Financial advisers are always looking for strategies to help clients maximize their capital. A new option is selling unneeded or underperforming life insurance policies. When marketing life settlements to high-net-worth seniors, the most important consideration for agents and brokers is demonstrating the value of those arrangements to customers. Life Settlement Solutions, Inc.’s "Tips of the Trade" column provides a resource for agents and brokers seeking to use life settlements as a means of building their business.
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Life insurance agents and brokers looking to side-step the usual summer sales blues may have heard of life settlements, but may not have sufficient knowledge to offer them to clients.
In response to agents’ growing need for information and education on life settlements, Life Settlement Solutions, Inc. will host the first-ever Life Settlement Awareness Month in June, to increase the awareness and knowledge of life settlements as well as to offer top-of-the-line marketing support, training and industry expertise to improve producer sales activities during a traditionally slow sales activity time of the year.
To read more regarding Life Settlement Awareness Month, go to
www.lss-corp.com/press_05_15_06.html or www.lifesettlementawarenessmonth.com. >>
Life Settlements Facilitate Charitable Giving
Life insurance agents and brokers often perform an estate-planning function, advising high-net-worth seniors who are looking to donate to their favorite charities as part of their plans. While many of these seniors want to include charities in the mix, they may not want or be able to tap into liquid assets to accomplish their philanthropic goals while they are alive. Many donors have used life insurance as an effective strategy to magnify the impact of their contributions, and life insurance settlements may provide a significant enhancement to that strategy.
Though agents and brokers typically use life settlements as a means of restructuring life insurance programs, investing for retirement needs or funding long-term care needs for their clients, many have yet to realize the benefits of using them as a tool for helping certain clients financially support charities.
To read more on how financial planners and life insurance agents and brokers can work with clients in using life settlements to accomplish philanthropic goals, go to http://www.lss-corp.com/LIS_feb06.pdf. >>
Life Settlements Provide Cash For Key-Person Policies
Many small- or medium-sized businesses have one person crucial to the organization. To safeguard the human and financial assets of the business, companies often purchase “key-person” policies that provide protection if its key executive prematurely dies, retires or suddenly leaves the organization.
In the past, when an insured key person retired or resigned, the company typically canceled its corporate-owned policy and took the cash-surrender value, if any was remaining.
In some cases, when a key employee retires, the company offers to transfer ownership of the key-person policy to the retiree. Such an offer is often declined, because the retiree does not need the policy or the obligation of making high premium payments.
There may also come a time when the key-person policy is no longer needed: the key executive may become less critical to the business because the aptitudes of other executives have improved or the business is sold.
For further information on how to recover assets from business-owned key-employee insurance plans, go to www.lss-corp.com/FE_Oct_05.pdf. >>
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