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    Professional Conversation Guide

    The Senior Life Settlement Conversation Guide

    A practical resource for agents, advisors, and referral partners on what to listen for, what to ask, and how to recognize opportunities to help senior clients make more informed decisions about their life insurance.

    Why This Matters

    Why This Matters

    Professionals who work with older Americans often hear about changes in a client's finances, retirement, family circumstances, healthcare costs, or monthly expenses.

    Sometimes those conversations uncover an asset the client has not reviewed in years: an existing life insurance policy.

    A client may be paying premiums on a policy they no longer need, can no longer comfortably afford, or are considering surrendering or allowing to lapse.

    Before that happens, it's worth making sure the client understands that other options may exist.

    A Few Facts Worth Knowing

    A Few Facts Worth Knowing

    1911
    In Grigsby v. Russell, the U.S. Supreme Court recognized a life insurance policy as personal property, establishing that it could be transferred.
    $100+ billion
    Reported annual face value of life insurance reportedly lapsed by Americans 65+.
    $212,066
    Average life settlement payment reported by LISA members in 2025.
    $24,360
    Average cash surrender value.
    ~9×
    Difference between those reported average settlement and surrender values.

    These figures are industry-reported averages and do not represent a guaranteed value or outcome for any individual policy.

    What to Listen For

    What to Listen For

    A client may never say, “I think I have a life insurance policy that I should review.”

    The conversation may start somewhere completely different.

    Listen for comments such as:

    “My expenses have gone up.”
    “I'm trying to cut down on my monthly bills.”
    “I'm not sure I still need everything I have.”
    “I'm looking for ways to free up some cash.”
    “My children are financially independent now.”
    “I don't want to keep paying for things I don't need.”
    “I'm thinking about cancelling a few things.”
    “I have an old policy I've had forever.”
    “I'm thinking about cancelling the policy.”
    “I was going to let it lapse.”
    “I wonder what this old policy is worth.”
    These comments don't mean a client should sell a policy. They simply may indicate that a policy review is worth considering before the client makes a permanent decision.
    Natural Follow-Up Questions

    Natural Follow-Up Questions

    The goal isn't to turn a normal client conversation into a sales pitch.

    A simple follow-up question can determine whether there is something worth exploring.

    If they're discussing rising expenses:
    “Do you happen to have any older policies you're considering cancelling, surrendering, or letting lapse?”
    If they're discussing retirement income or needing additional cash:
    “Have you looked at whether any existing policies could provide another financial option before you make changes?”
    If they mention cancelling a policy:
    “Before you cancel it, do you know what the policy is worth today and what alternatives you may have?”
    If they mention an older policy:
    “Do you know its current death benefit, cash surrender value, and premium?”
    The Five Things to Find Out

    The Five Things to Find Out

    You don't need to become a life-settlement expert.

    If a client raises the subject, these basic questions can help determine whether a separate review makes sense:

    01

    What type of policy is it?

    02

    What is the current death benefit?

    03

    What is the current cash surrender value?

    04

    What premium is the client currently paying?

    05

    Is the client considering surrendering, cancelling, or allowing the policy to lapse?

    The policy itself and its current documentation should ultimately be reviewed by the appropriate professionals.

    When a Separate Policy Review May Make Sense

    When a Separate Policy Review May Make Sense

    A review may be worth considering when:

    Premiums have become burdensome.
    The policy is no longer needed for its original purpose.
    The owner is considering surrendering the policy.
    The owner is considering allowing the policy to lapse.
    The owner's financial circumstances have changed.
    The owner's family or beneficiary circumstances have changed.
    The owner needs additional funds for retirement or other expenses.
    An older policy has accumulated substantial premiums or value.
    The owner simply wants to understand what options are available.
    The important point is timing.
    Once a policy has been surrendered or allowed to lapse, opportunities that may have existed beforehand may no longer be available.
    What You Don't Need to Do

    What You Don't Need to Do

    You don't need to:

    Determine whether a policy qualifies.
    Estimate a settlement offer.
    Tell a client they should sell their policy.
    Replace the client's financial, tax, legal, or insurance advisors.
    Become a life-settlement specialist.
    Your role can be much simpler
    Recognize the conversation. Ask a few basic questions. Make sure the client understands that surrendering or allowing a policy to lapse may not be their only option. Then, when appropriate, refer the client for a separate policy review.
    A Simple Referral Process

    A Simple Referral Process

    01

    Client mentions a policy

    They may mention premiums, cancelling coverage, an old policy, financial needs, or simply wondering what the policy is worth.

    02

    Ask a few basic questions

    Find out what type of policy they have, the death benefit, premiums, cash surrender value, and what they are considering doing with it.

    03

    Don't make the decision for them

    The purpose of the conversation is to identify whether the client may benefit from understanding additional options.

    04

    Refer for a separate review

    A qualified professional can review the policy and determine what options may be available.

    05

    Let the client make an informed decision

    The objective is education and informed decision-making, not automatically selling a policy.

    The Conversation Cheat Sheet

    The Conversation Cheat Sheet

    Client says:
    “I'm thinking about cancelling my policy.”
    You can say:
    “Before you do, do you know what the policy is worth today and what alternatives you may have?”
    Client says:
    “The premiums are getting too expensive.”
    You can say:
    “Do you have any older policies you're considering cancelling, surrendering, or letting lapse?”
    Client says:
    “My kids don't really need the policy anymore.”
    You can say:
    “Have you had the policy reviewed recently to see what options you may have?”
    Client says:
    “I have an old policy I've had forever.”
    You can say:
    “Do you know the current death benefit, cash surrender value, and premium?”
    Client says:
    “I was just going to let it lapse.”
    You can say:
    “Before you let it lapse, it may be worth finding out whether there are other options available.”
    Medicare & Life Settlement Compliance

    Keeping Medicare and Life Settlement Activities Separate

    CMS rules governing Medicare Advantage and Part D marketing prohibit cross-selling non-health-care-related products during Medicare sales and marketing activities. Life insurance is included among the non-health-care-related products identified in CMS guidance.

    Keep the Medicare appointment focused

    During a Medicare sales or marketing appointment, keep the discussion within the Medicare products and topics properly within the scope of that appointment.

    Do not use the Medicare appointment to market a life settlement or other non-health-care-related product.

    Keep the activities separate

    A life-settlement discussion should be conducted as a separate non-Medicare activity rather than as part of the Medicare sales or marketing appointment.

    There is no CMS-mandated 24- or 48-hour cooling-off period specifically between a Medicare appointment and a life-settlement discussion.

    Keep the Scope of Appointment accurate

    The Medicare Scope of Appointment is used to document the Medicare products to be discussed during the Medicare appointment.

    A life settlement should not be presented as a Medicare product or added to the Medicare SOA as a product being marketed during that appointment.

    If the client raises the subject

    A beneficiary may raise a life-insurance question during a Medicare conversation. The Medicare agent should not turn that appointment into a discussion or marketing activity for a life settlement.

    The Medicare discussion can remain focused on its proper scope, with any separate non-Medicare discussion handled outside that activity.

    What this means in practice

    Keep Medicare sales and marketing appointments focused on the applicable Medicare scope.
    Do not cross-sell life settlements or other non-health-care-related products during Medicare sales or marketing activity.
    Do not use the Medicare SOA to document a life-settlement discussion as part of the Medicare appointment.
    Handle any life-settlement discussion as a separate, non-Medicare activity.

    CMS requirements are not the only requirements that may apply. Agents and referral partners should also follow applicable state insurance laws, licensing requirements, carrier or agency policies, privacy requirements, and other rules governing the separate life-insurance or life-settlement activity.

    The key distinction is the activity, not simply the client.
    A person can be both a Medicare client and a life-insurance policy owner. The Medicare rules do not turn every future conversation with that person into a Medicare appointment. The important compliance consideration is keeping non-health-care-related product marketing outside the Medicare sales or marketing activity and following the requirements that apply to the separate activity.
    The Bottom Line

    You don't have to know everything about life settlements.

    You simply need to recognize when a client may be about to make a decision involving an older policy that could have significant financial consequences.

    The goal isn't to sell a life settlement.

    The goal is to help a client avoid unknowingly walking away from an asset before they understand what alternatives may exist.

    A simple question at the right time can give the client the opportunity to make a more informed decision.
    We're Here

    A conversation doesn't have to end with a guess.

    When a client has questions about an existing life insurance policy, we're available to help you understand what may be worth exploring before they make a decision.

    Kathy Casale
    Kathy Casale
    Rob Haynie
    Rob Haynie
    Have a client situation you'd like to discuss? We're happy to talk through it with you.
    Call us
    800-640-3527
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