Life Settlements - Advanced Settlements, Inc. – Leaders in the Life Settlement Industry

Financial Professionals

Selling one’s life insurance policy as part of a broader financial planning strategy may be a prudent business decision, but nonetheless a significant step for the policyholder. The individual will want to know that they can trust their financial advisor to recommend actions to meeting their changing needs.

Financial professionals have a responsibility to represent the seller’s interests in a life settlement transaction. The financial professional should approach this responsibility with a methodology that includes the following four-step process:

1. Assess the client’s overall financial picture to determine whether the life settlement is an option. This process is often referred to as determining the "suitability" for a life settlement.
2. Perform an analysis of the client’s probability for a life settlement by using the qualifying worksheet found on our Applications & Forms page of our web site.
3. Perform due diligence by researching the marketplace for a reputable life settlement provider / broker who is backed by qualified funders;
4. Pursue the highest market value for the seller by insisting on multiple offers from the life settlement provider.

Financial professionals can help their clients tap the liquidity that may be hidden in unneeded life insurance policies. But financial professionals should know that life settlements are not for everyone. At Advanced Settlements, we use the following criteria when working with advisors, producers and clients to obtain multiple offers for their policies:

1. The policyholder must have owned the life insurance policy for at least two years.
2. The policyholder must be generally over the age of 70 and have a life expectancy of 12 years or less.
3. The policy must have a minimum face value of $250,000.

Broker Dealers Entering the Marketplace
As more and more broker-dealers enter the Life Settlement marketplace, registered reps are recognizing that they have a responsibility to the client to inform them of a Life Settlement. Although a Life Settlement is not always a securities transaction,(see FINRA page) registered reps believe it has relevance to their profession and that it is important to at least inform the client of the option

Due Diligence
Not only will financial professionals be expected to perform due diligence as it relates to recommending the Life Settlement to their client as a financial planning tool, but they may also be expected to perform due diligence on the brokers and firms handling the Life Settlement transaction. Although efforts to regulate Life Settlements are gaining momentum throughout the nation, some states are only minimally involved.

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© 2001-2008 Advanced Settlements, Inc. All Rights Reserved.
This ad is intended for insurance and financial professionals only, and not for use for the general public. This advertisement does not apply to variable life settlements. Variable life settlements are settled through our BD affiliate. Life Settlement amounts are based on numerous factors. Actual results will vary. According to our internal statistics, the average purchase price obtained by viators through Advanced Settlements, Inc. (from July 1, - December 31, 2007) is approximately twenty-two percent of the face amount of a qualified life insurance policy. Some or all of the proceeds of a life settlement may be taxable under federal or state income tax laws. Advice from a professional tax advisor is recommended. The number of bidders for a policy may be limited; proceeds from sales of similar policies may vary and may be subject to claims of creditors. Receipt of proceeds may impact eligibility for government benefits and entitlements. Prior to sale, the insured should consider the continued need for coverage, impact to estate plans, availability of insurance, cost of comparable coverage or tax implications. There may be high fees associated with the sale of a life settlement. Securities offered through securities licensed representatives of NFP Securities, Inc., a Broker/Dealer and Member FINRA/SIPC. Advanced Settlements is an affiliate of NFP Securities, Inc. and a subsidiary of National Financial Partners Corp., the parent company of NFP Securities, Inc. Advanced Settlements, Inc. (or its principals) is an authorized broker or producer in all states where life settlements are regulated, except Montana.Pat Summerall and his experience with life settlements may not be representative of other clients. Mr. Summerall’s representation does not imply or guarantee any particular performance returns. Mr. Summerall was compensated for his endorsement.Location and mailing address: Advanced Settlements, Inc., 2101 Park Center Drive, Suite 220, Orlando, FL 32835. 1-800-561-4148. The Advanced Settlements, Inc. Website is currently not approved in the states of Oklahoma.