Doubling Down: How a Chance Encounter Led to a $660k Payout for a Valued Client
As the owner of The Fiduciary Firm, I’ve seen firsthand the power of strategic financial planning, especially when it comes to annuities and life insurance. Our mission is to ensure our clients maximize their financial security, and sometimes, that involves navigating unexpected twists and turns. This story is a testament to that commitment.
About 25 years ago, I helped a client, Larry, secure some life insurance policies. Fast forward to the present, and I found myself helping a friend avoid foreclosure on his mortgage. We struck a simple agreement: he could live in the house rent-free for the rest of his life, provided he maintained it, and upon his passing, the property would revert to me. We finalized the arrangement at a client’s title company, and as I was leaving, I ran into Sharon, Larry’s wife.
“Paul?” she asked, surprised.
“Sharon! How have you been?” I replied.
“I’ve been good,” she said, “and those life insurance policies have done just what you said they would.”
“That’s great to hear,” I responded. “But you wanted to talk about one of them?”
“Yes,” she admitted. “I’m thinking of cashing it in.”
Knowing the potential pitfalls of cashing in a policy, I urged her to reconsider. “Sharon, please don’t. I can get you significantly more money than a cash surrender value. What’s the best offer you’ve received?”
“I was offered $305,000,” she said.
“I can get you a lot more than that,” I assured her.
And I did. Leveraging my network and expertise in the viatical settlement market, I negotiated with four different companies. Within weeks, I secured an offer of $660,000—more than double her initial quote.
What is a Viatical Settlement?
A viatical settlement allows policyholders with a life-threatening illness to sell their life insurance policy for a lump-sum cash payment. This option often yields a much higher return than surrendering the policy for its cash value. (For more information on viatical settlements, you can refer to resources from the Life Insurance Settlement Association.)
Key Takeaways:
- Expert Guidance Matters: Having a knowledgeable advisor can make a significant difference in maximizing your financial outcomes.
- Exploring All Options: Don’t settle for the first offer you receive. Explore alternative solutions like viatical settlements.
- Long-Term Relationships: Building trust and maintaining relationships with clients can lead to unexpected opportunities.
Key Summary:
This article illustrates the significant financial benefits of exploring life settlement options, particularly viatical settlements, instead of simply surrendering a life insurance policy. By leveraging expert guidance and shopping around for competitive offers, individuals can potentially double their returns, as demonstrated in the case where a $305,000 offer was increased to $660,000. It emphasizes the importance of professional advice and thorough research in maximizing financial outcomes.
5-Point Checklist: Shopping Around for the Best Life Settlement Deal
When considering a life settlement, it’s crucial to approach the process with diligence and a keen eye. Here’s a 5-point checklist to help you secure the best possible deal:
- 1. Do Your Homework:
- Research and understand the life settlement market.
- Gather information about your policy’s value and potential offers.
- Don’t accept the first offer; shop around for multiple quotes.
- 2. Work with Reputable Professionals:
- Ensure you’re dealing with licensed and reputable brokers or settlement providers.
- Verify their credentials and check for any history of complaints.
- Find professionals that have fiduciary responsibilities.
- 3. Obtain Multiple Quotes:
- Contact several life settlement companies to compare offers.
- Negotiate with potential buyers to maximize your payout.
- Having multiple offers creates leverage.
- 4. Understand All Transaction Costs:
- Clearly understand all fees and commissions associated with the transaction.
- Ensure transparency in the settlement process.
- Ask for a full breakdown of any costs.
- 5. Protect Your Privacy:
- Be mindful of the personal and medical information you share.
- Verify the company’s privacy policies and data protection measures.
- Understand who will have access to your private information.
At The Fiduciary Firm, we understand that life is unpredictable. Whether you’re dealing with annuities, life insurance, or navigating complex financial situations, we’re here to provide expert guidance and support. We believe in going the extra mile for our clients, ensuring they receive the best possible outcomes.
How to reach us
You can reach us by:
- Phone at 410 989 1993
- Email at [email protected],
- Booking a meeting slot here.
We look forward to partnering with you on your financial journey