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Talk with Accountants About Life Settlements Now

By Robin S. Weinberger and Peter N. Katz

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What You Need to Know

  • Tax advisors hear about cash-flow problems.
  • They help with business terminations.
  • They also help with personal life changes that could affect coverage needs.

With the official deadline for filing individual income taxes behind us, and tax advisors finally getting some sleep, it’s a great time to make sure that all the accountants that you know, or wish to know, are aware of life settlements.

At this time of year, they are most up to date on their clients’ finances and any significant changes that may have occurred over the past year.

Many accountants remain unaware of life settlements as an alternative to the lapse or surrender of a life insurance policy.

Sharing information with them about settlements is a terrific way to differentiate you from the competition and can be a great conversation starter.

Because accountants are now most current on their clients’ financial pictures, it’s the perfect time to familiarize them with the various situations where a life settlement could benefit their clients:

  • Retirement.
  • Cash-flow issues.
  • The sale or termination of a business.
  • Bankruptcy or an adverse change to a client’s financial situation.
  • The death of a spouse or other intended beneficiary.
  • Divorce.
  • The loss of a job.

Additionally, in 2022, the estate tax exemption is $12.06 million for individuals and, with portability, $24.12 million for married couples.

As a result, clients may have a significantly reduced estate tax liability.

Many clients that have purchased life insurance policies to offset estate taxes may no longer need as much.

These unneeded policies are frequently great opportunities for life settlements.

The end of tax season represents a once-a-year opportunity to get in front of accountants on a most timely basis.

But don’t limit your efforts to accountants as it is also a good time to be sure that all advisors, not just accountants, are aware of life settlements.

By uncovering the hidden value in unwanted or unneeded policies, you can make an advisor a hero to their clients!

Life settlement firms like ours have developed many tools for newcomers to life settlements.

For example: To make it easy for you to both know what to say as well as to have something to send or leave behind, you can request a copy of our Life Settlement Guide for Professional Advisors.

Additionally, we can supply you with a prospecting letter specifically written for advisors.

Remember, the proceeds from a settlement can make a really meaningful difference in people’s lives. There is no better time to make advisors aware!

Robin Weinberger and Peter KatzRobin S. Weinberger, CLU, ChFC, CLTC, is the director of national accounts for Life Insurance Settlements Inc. She has been a general agent and director of national accounts for Connecticut Mutual and vice president of marketing for Sun Life of Canada. She can be reached at [email protected] or (617) 451-3343.

Peter N. Katz, JD, CLU, ChFC, RICP, is a life settlement broker and co-director of national accounts with Life Insurance Settlements Inc. He is also a consultant specializing in life insurance advanced sales illustrations, and he has served as an advanced markets attorney and in product development. He can be reached at [email protected] or (860) 937-2936.

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