Life Insurance Policy Valuation as a Client Service for Financial Professionals

Wealth managers play a crucial role in helping clients make financial decisions while also assisting in managing other vital assets. A wealth management advisor can even use life insurance as another way to help clients manage their finances. These financial advisors are trained to understand the actual value of a life insurance policy while determining if it makes sense for a client to consider a life settlement.

What is the Purpose of Wealth Management?

A wealth manager provides detailed financial advice while meeting the different needs of wealthy clients. High-net-worth clients can significantly benefit from using wealth managers, as they can help them make the best financial decisions while limiting or preventing any potential difficulties in the future. Financial advisors are also great for managing taxes and other tasks that can quickly become complicated for high-net-worth individuals.

Financial professionals with years of experience in the industry can take a comprehensive approach with each client, creating an investment strategy, selling a life insurance policy, or providing other financial advice and services. Wealth managers are also required to evaluate each asset while giving professional advice to ensure each client’s best interests are met.

Life Settlement and Financial Professionals

Understanding all life insurance settlement options is key to providing wealth management services that best meet clients’ needs. Financial professionals can work with clients to determine the best investment strategy. Selling a life insurance policy is an excellent way for clients to gain access to cash without selling any of their assets.

However, this process can quickly get complicated for wealthy clients, which is why wealth managers can play a crucial role in saving clients a lot of time while helping them to avoid costly mistakes. A wealth manager can help clients decide on the best strategy to meet their needs. These professionals can also answer any questions about the cash value of a life insurance policy or a policy death benefit.

Who Qualifies for a Life Settlement?

A life insurance policy can be sold if it can be converted into a permanent policy plan. Two of the main factors to consider in a life settlement transaction are the insured person’s health and age. Typically, the ideal candidate for selling a life insurance policy is someone that is in their mid-70s that has had health changes since the policy was created.

Term life insurance policies are also eligible for a life settlement if they are convertible. The only exception to this rule is if a person is in their 60s or early 70s with severe chronic conditions and a significant health change has occurred since the creation of the policy, as the life expectancy needs to be 15 years or less.

Why Should Clients Consider a Life Settlement?

A life settlement is an excellent choice for clients that no longer need their life insurance policy. A life settlement company can help clients get the best return on their investment. Clients can expect to receive a sum that’s higher than the cash value of a life insurance policy, but it will be less than the policy death benefit. Typically, a more significant settlement happens with a shorter life expectancy, but this can sometimes vary with the life insurance policy.

Clients can often feel overwhelmed, making simple mistakes while getting a life insurance policy appraisal easy. Financial advisors can work with clients to help them understand all of their settlement options for life insurance. Each client will have much greater peace of mind knowing that a wealth manager will guide them throughout each stage of the process to ensure everything happens smoothly without any significant issues or complications.

How to Offer Life Settlement to Your Clients

A wealth management company can be vital in assisting high-net-worth clients who need help managing their finances. Wealth managers can quickly analyze the benefits of a life settlement while giving clients advice throughout this process. Highlighting all life insurance settlement options is important in helping clients, whether they want to sell all or only a portion of their life insurance policy. Ultimately, each client has many different needs, and a wealth manager can work with a client to help them make the best decision on a life settlement transaction.

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