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FINRA Bulletin Uncovers Blind Spots for Wealth Managers About Life Settlements

What are the risks you need to discuss with your clients?

As an estate planner or investment advisor, you may be faced with a client who asks you for advice about considering a life settlement for their insurance policy. A life settlement is an option for a policy owner to sell and exchange their life insurance policy for a lump sum payment that’s higher than the cash surrender value and less than the death benefit. All policy types can qualify, including term. However, participating in a life settlement comes with risks, as detailed in a July 31,

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