|
|
| Agent Locator |
| Subscribe |
| Advertising Programs |
| Contact Us |
|
 |
|
Life policy valuation and Fair Market Value, a new tool for advisors by Kevin P. Cooley, President Life Asset Consultants |
|
Marketing Tips For Financial Planners Good news to share with your clients in an unsettled market. The buyers of in force life insurance polices within the secondary market are transforming the financial services industry. The dynamic change in the available options for cashing out a life insurance policy expands the fiduciary responsibility of agents, attorneys, estate planners, CPA's and wealth managers. It is the responsibility of the agent, as the trusted advisor, to maximize every client-owned asset. The agent must fully apprise their client of all available options while simultaneously communicating the impact each option will have on the client's investment portfolio and wealth management strategy. Educated advisors must think creatively during these uncertain financial times. Savvy advisors can create options for their clients by testing the secondary market. Advisors need to determine the pros and cons of surrendering a policy for the cash value versus allowing the policy to lapse with little or no return on the client's investment. It's a WIN - WIN - WIN scenario for the policy owner. By liquidating the policy for an amount higher than the policies cash surrender value, the client receives a lump sum cash pay out. The client WIN is three fold. There is immediate relief from monthly premium payments, and the under performing asset can be redirected to another investment vehicle or used for supplemental retirement income or utilized for legacy gifting. WIN summary: 1 - more cash -often three to four times the cash surrender value 2 - no further premium payments made by the client 3 - flexible investment options The advisor: "How do I WIN?" A competent advisor fulfills their fiduciary responsibility by presenting all options to the client. The settlement offer often generates two to three times the cash surrender value. You WIN when the client elects to use you to fund an annuity or another type of investment and you WIN again while the in-force policy continues to generate annual premiums. How do I offer my clients policy for life settlement? The advisor should align his client with an experienced trusted advisor, a licensed life settlement broker. Key attributes to look for:  Proven track record, industry experience with life settlement business focus Confidential treatment of clients personal & medical information Broker possesses high quality relationships with numerous (30+) providers and funding sources Broker with a 100% transparent bidding process - this insures multiple & competitive offers on the policy
Closing document with all required documentation provides for total transparency and timely processingFMV and highly competitive offers are the single focus of the life settlement broker. To ensure this process the contracted broker must be tightly aligned with the multiple funding sources,and investment banks. Verify that the broker has quality relationships with: Providers - funding sources who buy policies Institutional investors Investment banks Hedge funds Insurance companiesTop tier life settlement brokers perform extraordinary due diligence to ensure that the policy owner receives multiple bids while negotiating highly competitive bids for the client to consider. Experienced brokers only accept bids from entities that are ethical and will follow through by honoring their offer on closing date. No lowering of the bid offer and no delay in the closing process. The secondary market, provides a free market ensuring that the policy owner, your client, realizes Fair Market Value for their negotiable life insurance asset. That's a WIN for everyone. Kevin Cooley is President of Life Asset Consultants, Inc an independent licensed broker CA OF79567 contact info: O: 949.733.3332 C: 949 436 0079 Member of: National Association of Insurance and Financial Advisors (NAIFA) |
|
> Sponsor the Newsletter Cross-Sell to 150K
|
