The right questions.
A considered strategy.

Start with what is already in place.

A periodic review connects a policy’s original purpose with the client’s present needs. The process considers funding, guarantees, current performance and how the coverage fits the broader plan.

• Policy type, ownership, beneficiaries and intended purpose.
• Premium commitments, cash values, loans and surrender provisions.
• Current in-force illustrations and guaranteed versus non-guaranteed assumptions.
• Changes in family circumstances, business needs and funding capacity.

The review provides a basis for comparing available paths, including retaining the existing coverage, adjusting it where permitted or evaluating alternatives.

Replacing or surrendering a policy can affect coverage, costs, guarantees and tax treatment. Any proposed change should be evaluated against the existing contract before implementation.

Connect liquidity with a long-term purpose.

Life insurance planning should work alongside the client’s estate, business and family-governance arrangements. 1911 coordinates with the advisory team to evaluate how coverage could support the intended transfer of wealth.

• Liquidity needs associated with an estate or business transition.
• Planning for family equalization or future ownership changes.
• Alignment of policy ownership and beneficiary designations with legal documents.
• Premium funding that reflects the client’s resources and time horizon.

Legal structures and tax consequences belong within the client’s attorney and tax-advisor review. The insurance strategy should be consistent with that advice.

Bring market knowledge and execution together.

1911 coordinates sourcing, underwriting and placement, considering how potential options fit the client’s protection, funding and liquidity objectives.

• Primary market: evaluate potential new coverage, underwriting requirements, product structures and premium commitments.
• Secondary market: where appropriate, explore whether an existing policy may have market value beyond the owner’s ongoing need for it.
• Implementation: coordinate case documentation, advisor input and the steps needed for an informed decision.

Life settlements as an uncorrelated asset

Life-settlement returns are driven primarily by the timing of death benefits and the cost of acquiring and maintaining policies. This is why they are often described as an uncorrelated asset class: their principal return drivers differ from those of traditional stock and bond investments.

Data and actuarial analysis help evaluate life expectancy, premium obligations and potential outcomes. Longer-than-expected lifespans can increase costs and reduce returns. Insurer credit risk, limited liquidity, fees and legal considerations also matter. This description does not apply equally to every life insurance product or guarantee independence from economic conditions.

Further reading: FINRA Regulatory Notice 09-42, including endnote 4 and SEC Investor Bulletin — Life Settlements.

A life settlement is the sale of a policy to a third party. It involves giving up policy rights and death benefits, and can have tax, privacy and future-insurability implications. Eligibility and offers vary.

Further reading: NAIC — Understanding Life Settlements.