Why Your Insurance Agent Might Not Tell You About Life Settlements
When it comes to managing life insurance, many policyholders trust their insurance agents to provide comprehensive advice on all available options. However, agents and life settlements don’t always mix. The reason? Some insurance carriers prohibit their agents from discussing or even mentioning life settlements. This post aims to shed light on this often-overlooked option and explain how our platform can assist you in exploring life settlements, offering a referral fee to anyone who helps connect us with interested policyholders.
What is a Life Settlement?
A viatical settlement or life settlement involves selling your life insurance policy to a third party for a lump sum payment that is more than the cash surrender value but less than the death benefit. The purchaser becomes the new beneficiary and assumes responsibility for paying the premiums. Life settlements can be a beneficial option for policyholders who no longer need their policy, can’t afford the premiums, or need immediate cash for other purposes.
Why Aren’t Agents Talking About Life Settlements?
Many policyholders are surprised to learn that their agents might be restricted from discussing life settlements. Here’s why:
- Carrier Restrictions: Insurance companies often have policies that prohibit agents from discussing life settlements. These restrictions are put in place to prevent policyholders from cashing out early, which can affect the insurer’s financial stability and long-term planning.
- Lack of Awareness: Some agents might not be well-versed in life settlements or understand the nuances involved. Without proper knowledge, they may avoid discussing it altogether.
- Conflicts of Interest: Agents typically earn commissions from selling life insurance policies. Promoting a life settlement might not align with their financial incentives, especially if it leads to the termination of the policy they sold.
Why Consider a Life Settlement?
If your agent hasn’t mentioned life settlements, it’s worth exploring the benefits independently. Here are a few reasons why a life settlement might be a good option:
- Immediate Cash: Provides a lump sum payment that can be used for any financial need, such as medical bills, debt reduction, or retirement funding.
- No More Premiums: Relieves you from the ongoing obligation of paying premiums, which can be especially beneficial if your financial situation has changed.
- Higher Value than Surrender: Typically offers more money than the cash surrender value from the insurance company, giving you better financial leverage.
How We Can Help
Our platform is designed to assist you in navigating the life settlement process. Here’s how we can help:
- Expert Guidance: We provide expert advice and support throughout the life settlement process, ensuring you understand all aspects and make an informed decision.
- Maximized Value: We work to get you the highest possible settlement amount for your policy.
- Referral Program: We offer a referral fee to anyone who helps connect us with policyholders interested in exploring life settlements. This means that not only can you benefit from a life settlement, but you can also earn by helping others discover this option.
Our Platform Helps Your Agent Help You
Agents who are not allowed to receive a commission from a life settlement or work in the process because of company restrictions are often allowed to receive a referral fee. We have had countless agents contact viatical.org in an effort to help their client when they were not permitted to do so. Our compliant and legal referral fee is simply for the introduction, though it can be lucrative for the client and the agent. Viatical.org handles every aspect of the valuation and transaction through our platform with licensed buyers in the policy owner state.
If you are an agent and feel like your hands are tied and that you can’t offer the best option to your clients when they’re lapsing their life insurance policy, please give us a call. A short conversation will usually let you know if your clients are likely to qualify to sell their life insurance policy and if you’re eligible for a referral fee.
While your insurance agent might not be able to tell you about life settlements, that doesn’t mean you should miss out on this potentially valuable opportunity. Whether you no longer need your policy, are struggling with premiums, or simply want to unlock some immediate cash, a life settlement could be the answer. Our platform is here to assist you every step of the way and ensure you get the most out of your policy.
Don’t hesitate to give us a call at 800-973-8258 to learn more about how a life settlement can benefit you and find out if you are likely to qualify. If you’re an agent restricted by your carrier, we can help you navigate these limitations to ensure your clients have access to the best possible options.