How Advisors Can Unlock Hidden Value for Clients With Life Settlements
For many financial advisors, life insurance has always been a cornerstone of long-term planning — a tool for wealth transfer, estate protection, or tax-efficient accumulation.
But what happens when that same policy no longer serves its original purpose?
Maybe the client no longer needs the coverage. Maybe premiums have become unaffordable. Or maybe the policy’s beneficiaries are already financially secure.
In those moments, a life settlement can be one of the most powerful — and overlooked — solutions you can bring to the table as an advisor.
Why Life Settlements Deserve a Place in Your Practice
A life settlement is the sale of an existing life insurance policy to a licensed institutional buyer for a lump-sum cash payment that’s higher than the policy’s surrender value.
For clients who no longer need their policy, it can be a strategic way to:
- Access liquidity for retirement or healthcare
- Eliminate premium payments
- Reallocate funds into better-performing assets
- Create flexibility in estate or business planning
Yet, according to industry research, over 90% of lapsing policies could qualify for a settlement — and most clients have never heard of the option.
That’s an opportunity for advisors to deliver real value and strengthen trust.
When a Life Settlement Makes Sense
As an advisor, your job is to align financial products with your client’s goals. A life settlement may make sense if your client:
- Is age 65 or older
- Owns a universal, whole, or convertible term policy worth at least $100,000
- No longer needs the coverage (e.g., estate taxes reduced, debt paid off, beneficiaries independent)
- Can’t or doesn’t want to keep paying premiums
- Has experienced health changes since the policy was issued
In short, when the original purpose of the coverage fades, a settlement can turn that dormant policy into active value.
How Advisors Benefit
Life settlements aren’t just good for clients — they’re good for your practice too.
1. Strengthen Client Relationships
Bringing a new, transparent option builds credibility and trust. You’re showing that you care about their evolving needs, not just product sales.
2. Generate Additional Revenue
Advisors who facilitate settlements typically earn a transparent commission or referral fee when a case closes. Settle provides clear documentation of all compensation to ensure full compliance.
3. Retain Assets Under Management
Instead of losing client capital when a policy lapses, you help them unlock funds that can be reinvested into other vehicles — often within your management.
4. Differentiate Your Practice
Most advisors still overlook this solution. Offering life settlement expertise can help you stand out as a more complete, client-first professional.
A Look Inside the Settle Process for Advisors
We built Settle to make life settlements simple, secure, and transparent for both advisors and their clients.
Here’s how it works when you submit a case:
Step 1: Submit the Policy
Use our advisor portal to upload your client’s policy information securely. It only takes a few minutes to start the review process.
Step 2: Appraisal and Market Review
Our underwriting team analyzes the policy details, medical information, and premium schedule to determine eligibility and estimated market value.
Step 3: Competitive Bidding
We present the case to multiple licensed institutional buyers who compete for the policy. This transparent, auction-style process ensures your client receives the best possible offer.
Step 4: Offer Presentation
You and your client receive a clear side-by-side comparison of offers, including payout amounts and timelines. No hidden fees or confusion — just facts.
Step 5: Closing and Payment
Once your client accepts an offer, Settle manages all paperwork, escrow, and transfer logistics. Funds are disbursed securely, and advisor commissions are paid promptly.
What Makes Settle Different
Advisors who partner with Settle gain access to a streamlined, modern life settlement experience designed around trust, transparency, and technology.
Transparent Marketplace
Every case is shown to multiple verified buyers to drive competition and maximize payouts.
Advisor Dashboard
Track all your active cases, offers, and commissions in one place.
Dedicated Support
You’re never left in the dark. Our licensed specialists and case managers guide you — and your clients — from submission to closing.
Compliance Built-In
Settle follows state licensing requirements and provides full documentation for every transaction to ensure your compliance standards are always met.
Real Results, Real Impact
Here’s what our advisor partners are saying:
“Settle’s process was smooth and professional. My client received a payout 3x higher than what they were offered elsewhere. I’ll be using this platform again.”
— Michael L., Financial Advisor, Phoenix AZ
“They handled everything efficiently and communicated clearly throughout. It felt like working with a partner, not a vendor.”
— Laura M., Life Insurance Agent, Fort Worth TX
Best Practices for Advisors
To get the best results for your clients, keep these tips in mind:
- Review older policies annually. If a policy no longer fits your client’s goals, it may be a candidate for sale.
- Educate your clients early. Many seniors let policies lapse simply because they don’t know selling is an option.
- Work with licensed partners. Only use providers like Settle who are transparent about licensing, fees, and buyer sources.
- Document every discussion. Treat settlements like any other financial recommendation — note rationale and client approval.
- Stay proactive. The earlier you start the conversation, the better the outcomes for your client.
Common Questions Advisors Ask
Do I need to be licensed to submit a case?
If you’re already licensed as an insurance agent, you can typically submit cases through Settle. Our team handles compliance and disclosures for your client’s state.
How am I compensated?
We offer clear, pre-disclosed commission or referral structures for every transaction. You’ll know your compensation upfront before a case moves forward.
Can Settle work directly with my client?
Yes. You can stay involved as much or as little as you prefer. Some advisors prefer to manage client communication, while others let Settle handle it — we adapt to your workflow.
What if my client changes their mind?
No problem. There’s no obligation until an offer is accepted and funds are released. Clients can walk away at any time before closing.
Why Now Is the Time to Act
Demographics are shifting. Millions of baby boomers own large, permanent life insurance policies they no longer need or can’t afford to maintain.
At the same time, institutional demand for life settlements is at an all-time high — meaning higher offers and faster closings.
As an advisor, helping your clients understand this option isn’t just good service — it’s smart business.
Partner With Settle
We’re here to make life settlements simple, secure, and profitable for both you and your clients.
Join hundreds of advisors already using Settle to turn underused policies into real financial opportunity.
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