Making the Connection

What’s driving the rapid increase in the number of secondary market cases?  Above all, it’s the fact that advisors are increasingly connecting secondary market solutions into their day-to-day planning with clients.  Here are three suggestions for how to increase your own volume of cases in the same way.

Think Market Value

When considering a change of insurance for a client, advisors are first thinking about the policy’s market value.  They are pricing the policy before they begin an analysis of the policy’s performance. Only then can they determine if the policy is meeting expectations or if a change is in order.  In many cases, advisors will find that the policy’s market value is significantly higher than they thought, in which case reallocating those assets may be the most prudent path for the client. 

Think Options

Life settlements are just one of the market’s tools and advisors are now thinking more broadly about how the market can help their clients.  In addition to life settlements, many advisors are using Guaranteed Death Benefits or hybrid solutions that provide clients with a combination of cash and DB.  And they are constantly on the lookout for new innovations, such as Simplified Settlements that let clients with smaller policies close their cases more quickly.

Think Security

The most important consideration, for the advisor’s reputation and the client’s confidence, is making sure the case actually closes.  This is especially true given the heightened uncertainty in today’s financial markets. Having a provider pull an offer just before closing for lack of funding damages your credibility and can be disastrous to your client relationships.  For this reason, experienced advisors are choosing to go with established providers with exceptional closing records.  Only then can they KNOW the funds will be there at closing. Only then are they sure that the client is in good hands and that all their hard work on the case will be rewarded.