Q1 - Vol. 3, No. 2, February 2006      Life Settlement News

 

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Marketing Tips:  Develop Your Referral Network and Make Sure The Product Is Appropriate for the Senior Client

 

by Marlene Frith

Marketing Director

High net worth seniors, when first presented with the idea of a life settlement by their insurance agent, will often consult other members of their trusted team of advisors.  That is why it is important for producers to develop a referral network among estate planning attorneys, CPAs, and financial planners who serve high net worth senior clients. 

CPAs and estate planning attorneys who work on a fee-only basis are excellent sources for life settlement cases.  Because they are often accustomed to working with high net worth clients, fee-based professionals who have little background in the insurance industry may be looking for a source to which to refer senior clients who they have identified as a potential candidate for life settlements. One way to develop a close working relationship with CPAs or estate planning attorneys who serve seniors as trustees is to offer assistance in conducting a policy review of trust-owned life insurance. Many trustees of trust-owned life insurance are aware of their fiduciary duty to perform periodic reviews, but because it can be a challenging task, any help they can get from the insurance agent who is accustomed to performing policy evaluations would be welcomed.

When discussing life settlements with a senior, one of the most important questions a producer or financial professional should ask themselves is:  “Is a life settlement the best solution for this client in this specific situation?”  And a follow-up question to that would be:  “If I were this senior, and knowing what I know about life settlements, would I choose a life settlement given the same circumstances?”

Producers should thoroughly review the policy’s performance and discuss the client’s original intent when the policy was purchased.  Offer to collaborate with the senior’s CPA and estate planning attorney to evaluate all the ramifications of keeping or selling the policy – such as tax ramifications, opportunities for charitable giving, the availability of less expensive replacement coverage or the purchase of long term care insurance using the life settlement proceeds, whether the policy is draining cash in a trust, and so forth.

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Marlene Frith brings to the company more than 17 years experience as a marketing and communications executive. Marlene leads the company’s branding, national account, and multi-channel distribution strategies, as well as coaches key clients (producers) on effectively marketing life settlements to seniors. A graduate of Rollins College in Winter Park, Florida, Marlene earned the APR credential from the Public Relations Society of America. She writes extensively on the topic of life settlements and authored the industry's first white papers. Marlene is a board member of the Financial Planning Association of Central Florida; sits on the Marketing Committee of the Life Insurance Settlement Association (LISA); and holds membership in the American Marketing Association.
 

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