Sharing Life Settlement Industry Lessons Learned With Policy Owners

Jul 22, 2021 9:00:00 AM / by LISA

Elderly Couple In Meeting

Life settlement providers and brokers play a significant role in connecting policyholders with buyers. But, your responsibilities go a lot deeper than that. You also have an obligation to ensure policy owners make well-informed decisions when it comes to selling their life insurance. This is especially the case for many brokers, who may have a fiduciary duty to adhere to their client’s best interests.

As experts in the life settlement market, your clients lean on you to know the finer details and nuances that come with selling their policies. The more informed a decision they make, the better and smoother your relationship — a win-win scenario for all sides.

It’s also a case of legality: Nearly every state regulates the life settlement market. These regulations require you to disclose every step of the process, including detailing all policies, alternative options, transactions, and risks involved. 

How Can Educating Clients Grow the Life Settlement Market?

Beyond your legal duty, educating your clients on life settlements can have benefits for you as well. Informed clients are confident customers, and forming a true partnership with them will build trust and boost your credibility in their eyes.  

People are becoming more aware of life settlements as a financial strategy to avoid lapsing or high monthly premiums — or even if they need fast cash. Typically they need to gain a better understanding of how the process works and what their policy is worth. As a provider or intermediary, you’re the trusted expert who can help generate interest in potentially selling their life insurance policy.

Related Blog: What Factors Determine a Life Settlement Value?

Strategies for Building a Solid Foundation of Trust

Forming a trusted relationship with your clients can go far in securing favorable life settlements, and also for future opportunities. Many policy owners work with financial advisors, who may be more likely to recommend you to other clients after a positive experience. 

From early on in the relationship, be sure to follow these tips for establishing a trusted rapport. 

  • Get to know them. You’re helping to facilitate a transaction of large sums of money, but remember, there’s a person behind the paperwork. Ask them questions about their current situation. What do they want out of a life settlement? Do they have any concerns? Not only will this help you determine if they’re a good prospect, but you’ll strengthen your client-provider bond at the same time. 
  • Share testimonials and examples from past clients. Those who qualify for life settlements have likely never been through the process before. Giving them real-life examples of others you’ve helped in similar situations will help them feel at ease. These can be formal case studies or anecdotal.
  • Exceed their expectations. Your role in helping your clients get the highest value settlement goes beyond bidding wars. Take the extra step to check in with them, keep them abreast with updates, and do everything you can to make the complicated life settlement process as painless and smooth as possible. 

When it comes to life settlements, the best outcomes happen when your clients are equipped with the knowledge needed to make an informed decision. Building this trust from the start will strengthen your relationship and serve as a brand differentiator for your business within the market. 

If your clients need more life settlement education, encourage them to connect with a financial advisor if they haven’t done so already. You can also share our consumer blog, which is full of step-by-step guides, insights, and educational resources to help guide their decision. 

As a LISA member, we’re here to help you succeed as well. Stay up to date with valuable industry information and trends by subscribing to our blog!

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Tags: Financial Advisors, life settlement, Life Insurance Settlement, Life Insurance, Life Settlement Provider

LISA

Written by LISA