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Do Insurance agents monitor the life insurance portfolios of their clients to make sure policies are not allowed to lapse?

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Do Insurance agents monitor the life insurance portfolios of their clients to make sure policies are not allowed to lapse?

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Most insurance agents and planners admit that they do not monitor client life insurance to prevent lapses because their systems are not set up to do it. Another major reason is that advisors do not know about the benefits of life settlements for their clients and don’t understand that these often unneeded and unwanted policies are a source of additional revenue to the advisor by 1) assisting in the life settlement transaction and 2) by reinvesting the proceeds. Insurance agents are usually fully commissioned in the year the policy is sold. This creates little incentive to track previously sold policies unless there are other opportunities for servicing the client. Unfortunately, this situation can lead to the loss of an opportunity for the owner of a life insurance policy to consider the possibility of, let alone participate in, a life settlement transaction.

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