Too often the insurance broker community offers up a singular solution to clients wanting to cash in on a life insurance policy. That advice – to surrender the policy – can have a huge financial impact on the policy holder, and can expose the broker to unforeseen risks. Let’s assume Bill Broker’s client, Pam Policyholder, comes to Bill needing cash for her policy. Bill advises Pam to turn over her policy to the company in exchange for the surrender value stated in her policy – in this case, $60,000 for Pam’s $2,000,000 policy. Pam is pleased until someone informs her that a life settlement deal could have netted her more than $125,000 for that same policy. Pam in turn sues Bill and his company because they failed to advise her fully of her options. Had Pam known about the life settlement option, she would have netted more than double her policy’s surrender value. It’s not enough for insurance brokers to operate under the assumption that life settlements are not options open to their clients. In most cases, policy holders are indeed eligible for a life settlement arrangement. Failing to inform clients of that option could be a costly oversight. Most insurance policies state that insurers are not liable for insurance broker omissions when it comes to dealing with clients. That puts the onus on the broker to provide proper fiduciary responsibility and inform clients of all options, including any life settlement options available to them. Here are some tips for insurance brokers to fulfill this obligation: Also, advising your clients to consider life settlements requires equal due diligence. Opulen Capital works with brokers and their clients to help them understand and execute the best possible Life Settlement solution. Our program offers insurance brokers and clients a full range of information and advising services that help educate brokers and policy holders on the options available. Because we do the due diligence, insurance brokers have an added level of protection and a silent partner when presenting surrender options to policy holders. What’s clear is that life settlement options are no longer considered an invalid option when brokers are informing clients of their options. With more clients becoming savvy to the life settlements market, brokers need to become aware of the life settlements market and include life settlement options in any advice given to clients who qualify. Located in La Jolla, California, Opulen Capital is a specialized financial services firm focusing on products and services tailored for senior citizens. Opulen Capital is one of the leading firms offering Life Settlement opportunities for high net worth clientele. We leverage unrivaled experience and exclusive relationships in the life settlement marketplace to structure, obtain, and sell life insurance products to maximize cash profits for our valued clients. Opulen Capital’s mission is to continue to provide the best solutions for our clients through the highest level of integrity and service. For more information, visit our website at http://www.OpulenCapital.com or call Opulen at 877-OPULEN-1 (877-678-5361).
