Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Life Settlements

Course Objective


            This course was created to teach advisors (CPAs, EAs, accountants, attorneys, financial planners, insurance advisors) about a recent and much overlooked area of consulting, i.e., “Life Settlements.”  Advisors are supposed to assist clients with some or all of the following topics: estate plans, personal and business taxes, insurance and finances.  When looking at the previous list the topic of life settlements does not seem to jump off the page as a logical topic that would come up when dealing with any item on the list.


            This course will cover why clients in a variety of situations could benefit financially or from an estate planning perspective by using life settlements or viatical settlements.  This course will also give several real world examples where life settlement can be of service to clients.


Life Settlements


1) Introduction


2) Why should all advisors learn about life settlements?


3) Why sell a life insurance policy?

a) What type of life insurance policies works for life settlements?

b) When would a client consider selling a life insurance policy?

c) Statistics about the life settlement market

            d) Who is involved in Life Settlements?


4) The Process

            a) Due Diligence by an advisor regarding Life Settlements

b) Tax considerations

c) Tax Diagram

d) NAIC Disclosures

e) What if a client changes his/her mind after selling a life policy?

            f) What if a client dies shortly after completing a life settlement sale?

            g) Will a Provider contact clients about their health status?


5) Examples of Life Settlements

            a) No future need for life insurance

b) Term conversion

            b) Unplanned health change

            c) Additional insurance needed

            d) Key-man

6) Life Settlements without a Broker          

            a) How the client receive more money


Viatical Settlements          

7) What are viatical settlements?

8) Why would a terminally ill client sell their life insurance policy?

9) How does a typical Viatical Settlement work?

a) Are the investment returns of Viatical Settlements Guaranteed?

b) Are viatical settlement investments appropriate for the small investor?

c) Isn't investing in viatical settlements a humanitarian thing to do?

d) What happens if the underlying policy was obtained based on misrepresentations of health status?


10) What questions should be asked to the person trying to sell a viatical settlement?




12) What can go wrong with a Viatical Settlement?


13) Conclusion on Life Settlements and Viaticals


© 2017 The Wealth Preservation Institute • St. Joseph , MI • (269) 216-9978