Life Settlements and Insurance Professionals
Life insurance agents and producers are poised to assist their clients and profit the most from life settlement transactions, as they are the vanguard of the life insurance industry.
Life insurance agents have an opportunity to assist their clients like never before with life settlements. At the same time, life settlements are helping insurance agencies build stronger, better futures. The secondary market for life insurance is not only keeping existing policies in force, but life settlements are producing cash for the purchase of new life insurance policies which better suit a client's needs. Amrita Financial provides back office "solutions" for large agencies and brokers interested offering life settlements to their client base.
How do insurance agents and producers benefit from life settlements?
Not only are insurance agents that introduce their clients to life settlements helping their clients access valuable money, but they also profit from the life settlement. Commission is derived from the continued payment of premiums, the purchase of new policies with the proceeds and the term conversion if applicable. The secondary market for life insurance is not only keeping existing policies in force, but life settlements are producing cash for the purchase of new life insurance policies.
- Referral Comp: Earn Compensation for the referral of life settlement cases to Amrita Financial***
- Renewal Commission: Continue to earn renewal commissions on the existing policies that might otherwise lapse or be surrendered
- Replacement Product Commission: Earn commissions on new life insurance policies sold to replace the old policy.
- Term Conversion Commission: Earn conversion commissions on converted term policies that are purchased in life settlements.
- LTC Commissions: Earn commission on long term care products purchased with the proceeds of a life settlement.
- Investment Commission: Earn fees for investing the proceeds of a life settlement in other investments or annuities.
- Act In Client's Best Interest: Most importantly, you've acted in your client's best interest by advising him/her about the possibility of selling a life insurance policy for more than cash surrender value or selling a term policy instead of letting it lapse.
When is it appropriate for a client to sell their life insurance?
There are a number of reasons why a client may want to sell their life insurance policy in a life settlement. When a client is considering this, it is most important to maxmize the value of that asset in a life settlement. Some reasons to sell a life insurance policy in a life settlement include:
- Client needs cash and can get more than cash surrender value
- Get cash for a Term Policy that has no surrender value and is nearing the end of the term period.
- Avoid a policy lapsing due to prohibitive premiums
- Fund a new paid up life insurance policy that is better suited for their situation
- Pay for assisted living or a nursing home.
- Debt reduction
- Pay for children's education
- Purchase long-term care insurance
- Fund retirement
- Charitable contributions
- Estate Planning changes
- Replace an underperforming life insurance policy
- Purchase new investments
- Sale of business or retirement of executive
What type of policies qualify for a life settlement?
- Universal, 2nd to Die, 1st to Die, Whole Life, Term, Variable Life
- Be underwritten by an Insurance Company rated B+ or better by A.M. Best
- Be past the contestability period
- Face value between $50,000 and $100,000,000
- Insured age at least 65 years old
- Currently in Force
Clients need to know about life settlements.
Often circumstances change and an insured's life insurance policy isn't the most appropriate policy for their situation. They can let their existing policy lapse, surrender it or continue to paying for a policy that isn't providing the best coverage possible. Or they can sell their existing policy in a life settlement and purchase one that is better suited for their needs. It is essential that an insurance agent or producer fully advise their clients of the opportunity represented on the secondary (life settlement) market so that they may make the best decision for the future.
***Not available in all states. Please contact Amrita Financial for more details.