Estate planning rarely stays the same for long. Tax environments shift, exemption levels change, and clients’ financial needs evolve over time. For advisors, this often means reassessing older life insurance policies that were purchased for reasons that may no longer apply.
One increasingly valuable tool in these reviews is the life settlement — the ability for a client to sell an existing life insurance policy for immediate cash rather than allowing it to lapse or surrendering it for minimal value. For the right clients, a life settlement can create flexibility within an estate plan without requiring additional contributions or taking on new liabilities.
When A Client’s Life Insurance No Longer Fits The Estate Plan
Many policies were originally purchased to address estate tax exposure, provide liquidity, or equalize inheritances. As the years pass, circumstances change:
- Estate tax exemptions rise or fall
- Families restructure trusts
- Beneficiaries become financially independent
- Retirement income takes priority over legacy funding
- Premiums increase and strain cash flow
A policy that once served a strategic purpose may now:
- Be larger than necessary
- No longer fit the revised estate plan
- Create unnecessary premium obligations
- Produce less benefit than alternative uses of the same funds
This is where a life settlement review becomes a meaningful option for advisors evaluating policy performance.
How Life Settlements Strengthen Estate Planning Strategies
Selling a life insurance policy through a life settlement allows clients to reallocate capital toward areas of their plan that matter most today. Advisors often consider this approach to help clients:
- Fund trusts or gifting strategies while retaining liquidity
- Reduce debt to protect more of the estate for heirs
- Cover long-term care or medical needs without eroding retirement savings
- Reinvest proceeds into income-producing products for stability
- Adjust legacy strategies by equalizing support among beneficiaries
For some clients, a Partial Policy Life Settlement or Retained Death Benefit Life Settlement may be appropriate — reducing premiums while keeping a portion of the death benefit intact.
Life settlements offer advisors a flexible planning tool, especially when a policy no longer aligns with the client’s goals or the current estate landscape.
Why Advisors Choose LifeRoc
LifeRoc is the trusted provider for top advisors across the country seeking to navigate changing estate and tax landscapes through life insurance policy reviews. Here’s what sets us apart:
- Trusted Experience
$20+ billion in settled policies in our careers and more than 200 years of combined industry expertise. - Large, Leading Network of Funders
Direct access to our large network of funders that increases the possibilities for strong offers. - No Third-Party Broker Commissions
Advisors and their clients receive 100% of the gross offer. You maintain compensation flexibility with no third party broker commission splits. - End-to-End Sales Assistance
From prospecting tools, policy review to close, we handle the details so you can stay focused on your client
If you have a client whose life insurance needs may have changed in light of estate changes or new tax laws, we’re here to help. LifeRoc offers free, no-obligation policy appraisals and expert guidance to determine if a policy qualifies—and what it could be worth in today’s evolving market.
Making Policy Appraisals Part of Every Client Review
An annual policy review and appraisal is an essential part of estate and financial planning. Advisors can leverage LifeRoc’s free, 24-hour policy valuation as a practical financial tool to quickly determine whether a policy qualifies for a life settlement and what it may be worth on the secondary market. There is never any obligation to sell, and the appraisal often provides additional planning opportunities that can benefit both the advisor and the client.
Contact LifeRoc today to learn how you can leverage our free 24 Hour Policy Valuations and Life Settlements to deliver best-in-class financial solutions for your clients