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A Smarter Strategy for Managing Client Assets
As a financial advisor, your role is all about helping clients get the most out of what they already have and develop personalized financial strategies based on the client’s goals. That doesn’t just mean the obvious assets, it also includes things that are often overlooked, like life insurance policies.
Life settlements give your clients the chance to turn an unwanted or unaffordable policy into immediate cash. Better yet, that cash can be reinvested to grow their portfolio and increase your assets under management (AUM) in the process.
The Opportunity
Discover Untapped Value
Instead of letting a client surrender a policy for a minimal amount, you can guide them toward a life settlement. Many clients are surprised to learn they could receive up to eight times more this way.
Put Proceeds Back to Work
The money from a settlement doesn’t have to sit idle. It can be directed into investment accounts, trusts, annuities, or other products—keeping those assets working under your management.
Strengthen Client Relationships
Recommending a life settlement shows clients that you’re thinking creatively about their financial well-being. Even when a policy no longer serves them, you’re still offering a strategy that puts their interests first.
Advisor Benefits
Boost Your AUM
Life settlements create a lump sum that can be reinvested—directly increasing the assets you manage.
Open New Revenue Streams
- Settlement Commissions: Earn up to 30% of the gross offer (capped at 6% of the face value).
- Conversion Commissions: Assist with converting term policies to permanent coverage for additional revenue.
- Flexible Options: Choose compensation from the settlement, the conversion, or both.
Which Clients Are a Good Fit?
Life settlements aren’t for everyone, but they’re often the right choice for:
- Clients age 70+
- Policies that are unneeded, unwanted, or too expensive to maintain
- Individuals with health changes that may affect life expectancy
- Clients looking for liquidity or added retirement income
How Clients Use Settlement Funds
Once a policy is sold, clients can:
- Fill income gaps in retirement
- Cover long-term care or medical expenses
- Pay down debt
- Reinvest into accounts or annuities
- Support legacy or gifting goals
At the end of the day, recommending a life settlement isn’t just about liquidating an underused asset, it’s about helping your clients make smarter financial choices. At Abacus Life, we partner with financial advisors like you to provide clarity, confidence, and competitive value every step of the way. Whether you’re evaluating a specific case or simply exploring options, you can call us at (800) 561-4148 to speak with an expert or use our Life Settlement Calculator to estimate how much value your client’s policy could be worth.
