RIA Recommends Retired Couple Sell $1 Million Policy in Order to Achieve Travel Spending Goals
For retired clients who are looking for creative ways to optimize the cash assets in their retirement portfolio, this success story illustrates the importance of working with a financial professional who has knowledge of the secondary market for life insurance.
With the help of their Registered Investment Advisor, this retired couple was able to use the cash proceeds from selling an unwanted life insurance policy to achieve their travel spending goals without jeopardizing the financial legacy that they intended to leave behind for their family and their charity.
RIA Reviews Couple’s Portfolio and Recommends Life Settlement
With one adult child and three grandchildren, the retired couple’s primary goals were to support their grandchildren’s college education, as well as donate to their favorite charitable causes, including their alma mater. They wanted to travel more but also needed to make sure they did not outlive their money.
The couple requested that their RIA conduct a thorough analysis of their retirement assets and life insurance coverage. After taking into account the couples’ life expectancy and evaluating the balance in their retirement savings as well as their life insurance coverage, the advisor determined that the couple was well-positioned to meet their legacy planning objectives.
While the couple was satisfied to learn they were on course to achieve their primary goals, they asked the advisor to take a deeper dive to identify additional cash so they could travel more.
The advisor noted that the couple owned three life insurance policies, one of which was no longer needed for estate planning purposes. Being mindful of his fiduciary duty to make recommendations that are in the best interests of his clients (SEC Reg. BI), the advisor suggested that the couple sell the $1 million policy and use the cash proceeds to travel. The couple was impressed with the advisor’s knowledge regarding the secondary market for life insurance and agreed it would be financially prudent to sell the policy.
Asset Life Settlements was asked to broker the transaction in pursuit of the highest possible offer. We submitted the case to 13 funding sources and received multiple competing bids. The lowest bid came in at $85K and Asset Life Settlements continued to negotiate competing bids with buyers until the highest offer of $225K had been achieved and accepted by the insured.
The couple was truly grateful for their advisor’s recommendation and for our expertise in obtaining the highest possible offer. Selling the policy provided them with the peace of mind that they could travel and enjoy the remainder of their golden years without jeopardizing their financial legacy.
Key Take-Aways
• RIAs have an opportunity to expand their menu of advisory services by adding life settlements to their services.
• In the age of “Best Interest” regulations, selling an unwanted policy to achieve retirement goals can often be the most prudent recommendation.
• Asset Life Settlements has the secondary market expertise to negotiate the highest possible settlement for your client’s policy.
Call us at 1-855-768-9085 to explore your client’s eligibility for a life settlement or to request a free policy appraisal.
