How to Make Money by Selling Life Insurance Settlements

My opinion on how financial advisors, CPA's, estate planning attorneys, and life insurance agents can make money in the life settlement industry.

Instructions

1. 

   Are you a financial advisor looking for cutting edge concepts to help your clients? The life settlement industry is a vastly growing industry catering to senior citizens ages 65-90. This is an overview on what to keep your eye out for.

2. Institutional investors such as Credit Suisse and Goldman Sachs are buying up life insurance policies in droves from seniors who longer need or want their life insurance policy or policies. If you have clients that are at least 65 years of age and have 250K of life insurance in force, they all should be considered.

3. Life Settlements can potentially make your client 2-5 times the cash value in your policy. Investors also buy term policies as long as they are still convertable to permanent insurance, preferably universal life. This money in turn is put in your clients hands to invest with, either for securities or more insurance depending on their needs.

4. As their advisor, you of course will be helping them invest the proceeds, which in turn creates more potential sales for your firm. Life Settlement commission can be very aggressive, almost paying out similar compensation as to what realtors make when they sell a house. This is not a financial tool for everyone, but is starting to become more mainstream as Wall Street has announced they want to securitize life settlement portfolios creating a tremendous buzz in the industry.

Tips & Warnings

• This is simply my opinion based on my knowledge and experience in financial services.