Unlocking Hidden Liquidity: LifeRoc Capital Highlights the Importance of Life Settlements as an Option for Financial Advisors and Insurance Agents

PR Newswire
Monday, February 12, 2024 at 1:34pm UTC

Unlocking Hidden Liquidity: LifeRoc Capital Highlights the Importance of Life Settlements as an Option for Financial Advisors and Insurance Agents

PR Newswire

LOS ANGELES, Feb. 12, 2024 /PRNewswire/ -- In an ever evolving financial planning landscape, advisors continue to play a crucial role in guiding their clients toward building sound financial plans. LifeRoc Capital, a leading provider in the life settlement industry, empowers financial professionals to offer their clients a lesser-known liquidity solution known as "Life Settlements."

Life Settlements: A Shift in Perspective

A Life Settlement involves the sale of a life insurance policy to a third party for a lump sum cash payment. This financial tool can provide clients with the option to access the value of their life insurance policies now, when they need it most, at amounts that can be significantly higher than the cash surrender-value offered the insurance company.

Unfortunately, though, many clients simply surrender their policies for the cash surrender value offered by the insurance company, rather than exploring a Life Settlement as an option to receive more for their life insurance policy via a life settlement. It is important for advisor to keep a few details in mind:

  • According to Milliam USA (2004), almost 85% of term policies fail to pay a death claim, and 74% of term policies and 76% of universal life policies sold to seniors at age 65 never pay a claim.
  • According to the Life Insurance Settlement Association clients on average receive approximately 4 times a policy's cash-surrender value through a life settlement.
  • A free life insurance appraisal can quickly help determine a policy's potential market value.

Many savvy Financial Advisors and Insurance Agents have already implemented Life Settlements into their practices, recognizing them as a strategic financial planning tool for seniors.

  • Unlock Hidden Value: Life Settlements can unlock the tremendous value of a life insurance policy, providing clients with a valuable liquidity.
  • Diversify Financial Portfolios: By offering Life Settlements as an option, advisors can help clients diversify their clients' investments.
  • Address Changing Needs: Life Settlements can be a lifeline for policyholders facing tough financial circumstances, allowing them immediate access to much-needed funds.

Life Settlements: An Untapped Financial Solution

In the next decade, the US Census Bureau predicts that by 2034, seniors will outnumber children for the first time in US history. Yet many advisors are not aware of this potentially hidden asset in their clients' portfolios. While it is commonly assumed that these life insurance policies are valued solely based on the cash-surrender value reported in annual insurance statements, this is not always the case. In fact, the "market value" of these life insurance policies may often far surpass the cash-surrender value.

"Advisors and agents should explore all suitable financial options for their clients," said Aaron Giroux, CEO of LifeRoc Capital. "Life Settlements, while not yet widely discussed, can be a valuable addition to a client's financial planning – especially for senior clients. A no-cost policy appraisal is an easy and quick way to start the process of exploring the options available. Being informed and being able to provide all the possible options to clients is what we want to help empower advisors with."

Requesting a free policy appraisal is often the best way to get started.

About LifeRoc Capital, LLC

LifeRoc is a licensed direct life settlement provider helping professional advisors unlock the value of life insurance policies for their clients. Partnering with the nation's top financial institutions, independent trust firms, financial planners, attorneys, and CPAs, LifeRoc navigates the intricate world of life settlements with a high-touch concierge approach. LifeRoc serves high net worth and ultra-high net worth markets as a premier settlement partner. Learn more at www.LifeRocCapital.com.

Follow LifeRoc on social media to learn more about options and individual policy valuation options: LinkedIn, Facebook, YouTube.

Media Contact:

Wendi Liechty
Communications Manager

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SOURCE LifeRoc Capital