Will Your Clients' Life Insurance Expire Before They Do?
The client was, of course, thrilled. She had never heard of a life settlement as an alternative to surrendering a policy.
What if the client had not been approached by her advisor?
Convertible Term
Term insurance presents its own unique set of variables that must be watched.
Term is typically purchased for a need that will terminate after an expected period of time.
This, of course, raises the question of whether that need has terminated or will continue on longer than anticipated.
If the term policy falls short, it may be time to obtain a new policy or to convert the policy to permanent coverage.
While there are clearly opportunities if more insurance is required, there is also an opportunity if insurance is to be lapsed or terminated: a life settlement.
If the policy to be terminated is term insurance, unknown to many advisers is that these policies may also be sold in a life settlement.
Term policies that are convertible to universal life can make excellent life settlement prospects.
Policies often don’t perform as projected and peoples’ situations change throughout their lives.
Being proactive by offering to do policy reviews is the best way to ensure that your clients’ insurance will be in force at the time when it is needed most, at their death.
If, upon review, it is determined that there is more insurance than is needed, wanted or affordable, you owe it to your senior clients to explore the option of a life settlement.
Robin S. Weinberger, CLU, ChFC, CLTC, is the director of national accounts for Life Insurance Settlements Inc. She has been a general agent and director of national accounts for Connecticut Mutual and vice president of marketing for Sun Life of Canada. She can be reached at [email protected] or (617) 451-3343.
Peter N. Katz, JD, CLU, ChFC, RICP, is a life settlement broker and co-director of national accounts with Life Insurance Settlements. He is also a consultant specializing in life insurance advanced sales illustrations, and he has served as an advanced markets attorney and in product development. He can be reached at [email protected] or (860) 937-2936.
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