WELCOME TO THE WEBSITE OF NAIFA-WEST VIRGINIA

The National Association of Insurance and Financial Advisors

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NAIFA-WV CE Classes and Membership Lunch Meeting in Charleston

MORNING CE CLASSES:

9:30 AM – Purpose Driven Retirement Plans – #111251

10:30 AM – Using Reverse Mortgages as a Financial Planning Tool – #11425

FOLLOWED BY OUR MEMBERSHIP LUNCH MEETING:

“Life Settlements”

Harold Vealey

Vealey Financial Services, Charleston, WV

Survey Shows Life Settlements Remain Misunderstood

The life settlement industry has an exceptional opportunity to re-cast how it is perceived by the financial planning community. lt should begin soon and stress education and opportunity.

Executives know that a key to growing any business is understanding our market and our customers. The life settlement industry is no different, and for years we have relied on the financial services industry to help promote our message and value proposition. Recently, we learned that despite more than 20 years in existence and countless educational efforts, life settlements remain misunderstood among many financial advisors – and we have the research to prove it.

The Lifeline Program and WealthManagement.com recently surveyed financial advisors about life settlements, and more than 4070 of respondents were either unfamiliar or had only “heard of’ life settlements. While nearly half of respondents were aware of life settlements, only 11% had either recommended a life settlement or assisted a client with a transaction.

All of this despite the industry growing by more than 20% in 2013 and continued growth on the horizon. The survey showed that many advisors believe the need specialized knowledge in order to recommend life settlements, and nearly 3 in 10 drew a strong association between life settlements and stranger-originated life insurance policy problems from a few years ago. Some advisors also believe the transactions are only for the terminally ill, while others say they may be illegal, and still others find them creepy.

The life settlement value proposition has always centered-around the transaction being sensible alternative to surrendering a policy for allowing it to lapse. For those who understand life settlements, this message has gotten through. Nearly half of advisors surveyed believe that clients who plan to let coverage lapse should consider selling their life insurance policy. The same proportion of advisors also said life settlements are a viable option for clients with unneeded or unwanted life insurance. Our core message has reached part of our audience but we need deeper penetration.