A Trustee’s Guide to Life Settlements

A Trustee’s Guide to Life Settlements

For this trustee’s guide, it is important to understand the many variables that go into a life settlement. A life settlement occurs when a client sells their life insurance to a third party provider of their choosing. Upon payment, they receive monetary compensation in return for the policy.

There are multiple strategies by which a client can maximize the return they get. One way is through life insurance premium financing, in which a client will use a loan equivalent to the amount of money they provide to the third party. This allows them to retain far more capital than they otherwise would. 

At best, life settlements are confusing.  That confusion can make you uncomfortable to the point where you allow a client to surrender or lapse a policy without exploring your options. That would be a mistake – one that could cost the client money and put you in hot water.  It’s hard to move ahead if you do not know how. We understand that, just like we understand life settlements.

It is also important to understand how to reduce both risk and risk liability when implementing life settlements. Not only should a trustee be able to manage effective policy around risk, they should also be able to understand how factors such as low interest rates can affect these measures. 

By attending this session, you will learn when and how to sell a policy to get the most value for your client.  We will outline a prudent process for you to follow to limit your liability, while ensuring that you maximize the value of your client’s assets. By working through real-life case studies with us, you will see clearly how the process works.  If there is one session on life settlements that you should attend, this is it.

Watch the recording of this webinar from June 10, 2020, to learn more about Life Settlements as a trust owned life insurance trustee.

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