By Grant Shellhammer
Life Settlements is the sale of a life insurance policy by a senior for an amount greater than the current Cash Surrender Value of the policy.
The proceeds of the sale can be used in any way and are often utilized to fund other financial products including additional life insurance, long-term care, annuities, and investments for future financial gains.
Policy owners and their financial advisors have fund new value in life insurance by employing life settlements as a dynamic financial planning tool. In a majority of the cases, many of these life insurance policies are under performing, unwanted, or no longer needed.
Financial advisors now have the ability to offer life insurance settlements to their senior clients. This is a new tool the can create a creative and valuable option to your clients.
Some benefits to the advisors are:
Creating new capital for clients. The new capital generated by a life settlement will allow the advisor to present additional products that can greatly benefit the client.
Reducing the rate of policies lapsing. Policies without cash value are often lapsed, even after years of premium contribution. A life settlement now provides a payout for a policy your client is going to lapse.
Keeping renewal and residual income. After the policyholder is issued a settlement, the policy is still in force and the life settlement company is still paying premiums. This will keep any residuals intact.
Life settlements also generate the ability to build client loyalty by converting their life insurance policy into cash that exceeds cash surrender value. Most senior policyholders are not aware that a life settlement is available to them. The financial advisor can now gain tremendous loyalty by educating and assisting their client with a product that will generate "new found money".
Financial advisors and professionals who offer life settlements to their clients are able to receive life settlement commissions. The advisors can also earn additional commissions on replacement insurance such as Annuities, Long Term Care, Life Insurance, and other financial planning products.
RTG Consultants are Life Settlement Specialists and provide life settlement marketing and training kits to agents and financial advisors nationwide. Life Settlements can be offered through RTG's life settlement broker affliate.
Often times the right information can change a person's life. Read this thoroughly. We hope it will help you.
First of all, Viaticals have been recently identified by the life insurance industry as a scenario whereby persons exchange or market their title in a life insurance policy in exchange for a lump sum of cash...... read the rest here....[Link]
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