4. What sorts of issues may come up?
Just like the writing of a will or the creation of a belief, a life settlement is a big property planning occasion, which, moreover, includes a senior.
Equally, a life settlement considerations a life insurance coverage coverage which will symbolize a considerable portion of an insured’s property.
Like a contested property, theoretically, the life settlement transaction might be challenged primarily based on the competency of the insured/vendor.
Because of this, life settlement buyers require a letter of competency on a type they supply, which can supply them some safety ought to the validity of the sale of the coverage be challenged primarily based on the capability of the insured/vendor.
Peace of Thoughts
Understanding about how letters of competency work and in regards to the potential pitfalls is necessary for a monetary skilled serving to a consumer promote a coverage, however issues on this space are, fortunately, uncommon.
Life settlements are extremely regulated transactions within the overwhelming majority of states.
A letter of competency is simply one other strategy to guarantee all events concerned within the transaction that the insured/vendor has the wherewithal to make rational monetary selections.
Robin S. Weinberger, CLU, ChFC, CLTC, is the director of nationwide accounts for Life Insurance coverage Settlements Inc. She has been a common agent and director of nationwide accounts for Connecticut Mutual and vp of selling for Solar Lifetime of Canada. She might be reached at [email protected] or (617) 451-3343.
Peter N. Katz, JD, CLU, ChFC, RICP, is a life settlement dealer and co-director of nationwide accounts with Life Insurance coverage Settlements. He’s additionally a guide specializing in life insurance coverage superior gross sales illustrations, and he has served as a complicated markets lawyer and in product growth. He might be reached at [email protected] or (860) 937-2936.
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