Well, Junior may end up being the benefactor of a senior life settlement. When going through the senior life settlement process it’s typically in the best interest that all parties are informed, educated and on the same page. Advisors, beneficiaries and family members should all be involved. Typically, family members are listed as beneficiaries either directly or through a trust. When life insurance policies have significant death benefit values benefactors can sometimes have an emotional attachment to that value. And when a settlement offer comes in at 20-35% of the death benefit, the benefactors can have feelings of remorse. So only after researching all options with the life insurance policy then a life settlement appraisal should be suggested.
It’s also a feeling of mortality when having your life expectancy report done. Not only for the insured but also for Junior. They are most times very tuned in to the value of their parents estate. And to have a portion of their future inheritance reduced by a settlement offer they can sometimes have some difficulty. That’s why all avenues should be exhausted before going through a senior life settlement. Options include reducing the death benefit to help save on premium, converting to a reduced paid up policy, cashing in the policy for it’s cash surrender value or just letting the policy run it’s course without any further premiums. After reviewing these scenario’s and comparing to a settlement option, then a more educated decision can be made.
A truely professional advisor would recommend a team approach when suggesting a life settlement. And that would certainly involve all of the juniors associated with the insured. Look for our team of true professionals by visiting our LIVEpdq website.