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5 Key Qualifiers re: Life Settlements
In expanding services for your clients, consider raising the question about the status
of their existing life insurance policies. Are they planning to let them lapse or turn
them in (surrender). For certain life insurance policies, advisors can expand their client
assets by evaluating if one or more of these policies can realize very attractive benefits
in the Life Settlement market.
Be prepared to evaluate life insurance policies with these key qualifications:
WHEN you have Senior-aged clients:
- 70 years old or older
- Holding a life insurance policy with a death benefit of $250,000 and more
- The policy is lapsing or being surrendered
- With a change in the health status
- With a need for new life insurance, annuities, or long term care, or cash
In addition, review your Senior clients' life insurance policy and total financial situation for:
- Deceased beneficiaries, including a spouse or children
- Outdated beneficiaries, as in the case of an ex-spouse still named
- Inappropriate beneficiaries, as when a company holds key-man insurance
of a retiring or retired executive
- Estate is reduced and now the tax burden is lowered
- Inability of client to no longer afford the premium payments
to keep the policy in force
- Projected taxes insufficient for beneficiaries to pay from insurance proceeds
WHEN Other Things Change:
- The Senior's company or partnership is selling or being dissolved or
assets are being liquidated due to bankruptcy or the partner has died
and a buy-sell agreement is involved
- Estate tax exclusion allowance now sufficient for insurance to pay estate tax liability
- The charitable organization who owns a donated policy
cannot maintain premium payments or wants to monetize it
THEN: Ask Outsource Insurance Services about managing a Life Settlement:
- Comprehensive, thorough evaluation
- Assistance with Counsel's legal requirements for Due Diligence
- Confidentiality of personal client information protected
- Handles all documentation and paperwork -
from information gathering to submission to completion and disbursement
- Compliant with applicable state laws and regulatory issues
- Considers and presents all options
- Competitive bidding from many funding sources for offers
- Highest possible cash offer to maximize settlement proceeds
A careful review of existing life insurance policies helps provide more effectively
for the distribution of the estate.
Contact Us
Outsource Insurance Services, Inc.
269 S. Lorraine Blvd.
Los Angeles, CA 90004
(323) 908-7726
www.outsourceins.com
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