For Financial Professionals




Supporting Professionals

At Asset Life Settlements, we support financial professionals in helping their clients make informed decisions about life insurance policies. 

 Life settlements can provide valuable financial flexibility, especially for clients whose policies no longer align with their needs or goals. 

 Here’s how and when to introduce life settlements and tailored insights for different types of financial professionals.

When to Talk to Clients About Life Settlements

Life settlements can benefit clients in various financial situations. Here are key moments when a life settlement may be a valuable option:

Policy No Longer Needed

Clients may no longer need their life insurance due to changes in financial or family situations..

Premiums Becoming a Burden

As premium costs increase with age, clients may find them difficult to maintain, making a settlement a favorable option.

Need for Immediate Cash Flow

If clients need funds for retirement, medical expenses, or investment opportunities, a life settlement can offer immediate liquidity.

Term Policy Nearing Expiration

When term policies are about to expire, converting them into a life settlement helps clients receive value rather than letting them lapse.




By proactively identifying these situations, you can offer clients an alternative financial solution that aligns with their current needs and goals.

 
Specialized Guidance for Financial Professionals

 



Estate Planning Attorneys

For estate planning attorneys, life settlements can be a strategic tool in managing a client’s estate. Life insurance policies often become redundant or burdensome as clients’ needs shift in retirement or as dependents reach financial independence. A life settlement allows attorneys to:

  • Unlock Liquid Assets: Convert policies into immediate cash for use in estate planning or wealth distribution.

  • Reduce Estate Tax Liabilities: Minimize the taxable estate by turning large life insurance policies into cash, potentially benefiting heirs.

  • Enhance Estate Flexibility: Offer clients the option to reallocate funds for other priorities, such as trusts or endowments.

By incorporating life settlements into estate planning discussions, attorneys can provide clients with more comprehensive, adaptable estate strategies.

CPAs and Tax Advisors

Life settlements offer unique tax advantages and income flexibility, making them a beneficial option for clients managing complex tax situations. CPAs and tax advisors can leverage life settlements to:

  • Optimize Tax Strategy: Advise clients on the potential tax implications and benefits of a life settlement, including capital gains treatment.

  • Generate Cash Flow for Financial Goals: Help clients access liquidity without affecting their tax status as dramatically as other income- generating options.

  • Manage Premium Costs: Offer an alternative for clients burdened by premium payments, freeing up resources for other financial goals.

By understanding the tax nuances, CPAs and tax advisors can guide clients to maximize the financial advantages of life settlements..

Charities and Nonprofit Organizations

Charitable organizations often receive life insurance policies as donations but may find them costly or impractical to maintain. Life settlements present a way for charities to:

  • Convert Policies into Immediate Funds: Turn a life insurance policy donation into cash that can be immediately used for charitable work.

  • Reduce Costs: Avoid the expense of ongoing premium payments, freeing up budget for impactful initiatives.

  • Increase Donor Flexibility: Encourage donors to consider life insurance as a charitable gift, knowing it can be converted into usable funds.

Promoting life settlements as a giving option empowers charities to maximize donated resources and engage donors in meaningful financial contributions.

Financial Professionals

Life insurance policies, particularly key man policies and high-value personal policies, can be valuable tools in financial planning and wealth management. For financial professionals, life settlements can:

  • Enhance Client Portfolios: Incorporate the market value of a life settlement as an alternative asset to improve overall portfolio diversification and financial outcomes.

  • Provide Liquidity Solutions: Offer clients cash flow options by converting underperforming or no-longer-needed policies into liquid assets for reinvestment or financial stability.

  • Support Comprehensive Financial Planning: Utilize life settlements as part of broader strategies for retirement planning, estate planning, and business succession.

By integrating life settlements into their services, financial professionals can provide their clients with innovative solutions to maximize financial potential and achieve long-term goals.