How Life Settlements Fit Fiduciary Responsibility:

Many advisors wonder where life settlements fit in their financial services ‘toolbelt.’ While life settlements might not always be the perfect answer for every client’s specific situation, they should always be a topic of education. Approximately 90% of seniors who lapsed their policy would have pursued a life settlement had they known the option existed, according to a 2010 survey. The same survey noted that 49% of advisors cited lack of knowledge as the main reason for not recommending life settlement options to their clients.

At ILS, we consider ourselves educators about the life settlement process, because we understand that advisors may have never encountered a life settlement before, or if they have, it has been several years since the last conversation about the settlement market came up for them. It is extremely important in the context of fiduciary responsibility to be fully cognizant of the available options for your client’s life insurance policy, and would encourage you to schedule time with a member of our team to learn about how life settlements can serve as a vital resource for you and your team.