Life Settlements

An Exit Strategy Worth Considering

A new year means new goals and new planning opportunities, including any adjustments that need to be made to an insurance portfolio inside of an estate plan or business plan.  Once the client’s time horizon has been considered and the policy review has been completed, options should be reviewed to implement a modified plan that fits the current needs of the client.

If a client has an abbreviated lifespan and needs to adjust their short-term planning, we recommend considering a life settlement as an exit strategy for policies that are no longer needed.  A life settlement is a strategy that allows a third-party investor to purchase a life insurance policy from the policy owner for an amount that is higher than the surrender cash value but lower than the death benefit.  Life settlements can be attractive for individuals who no longer need the death benefit but would like to receive a larger return on the premiums that have been invested into a policy than the surrender cash value would yield.  We would be happy to provide guidance regarding the requirements for this exit strategy, since restrictions do apply.

Since we spend much of our time working with advisors, many of our new client relationships come directly from attorneys, accountants, and wealth managers. We have gained the trust of these advisors, and in turn have earned the privilege to be of service to their clients.  Contact us with any questions or opportunities to help you or your clients achieve identified goals.  This is what we enjoy doing for only a select number of families, businesses, and charitable institutions each year, and we look forward to hearing from you.