At LCX Life, we often speak with financial professionals who have heard of life settlements but aren’t fully familiar with how they work or when they may benefit a client.

To help simplify the topic, we recently sat down with Shannon Carpenter, a nationally licensed financial advisor, licensed insurance agent, and serial entrepreneur, to discuss life settlements from the perspective of financial professionals and agents.

In this conversation, Shannon interviews Steven Shapiro, Founder and CEO of LCX Life, who provides an overview of the life settlement market and answers some of the most common questions advisors have when first learning about the industry.

This short interview highlights how life settlements work, when they may make sense for clients, and how advisors can identify opportunities to add value by reviewing policies that may no longer fit within a client’s financial plan.

Watch the Interview

Key Takeaways from the Interview

1. Many Policies Never Pay a Death Benefit.  
   A large percentage of life insurance policies never result in a claim. Instead, policies are often lapsed, surrendered, or no longer needed. Before a client lapses or surrenders a policy, it’s worth evaluating whether additional value exists in the secondary market.
2. Life Settlements Can Unlock Meaningful Value
   In many cases, a life settlement can provide significantly more value than the surrender amount. For the right client, this can mean additional retirement income, funds for healthcare, or liquidity for other financial priorities.
3. Advisors Play a Critical Role
   Financial advisors are often the first to recognize when a policy no longer fits a client’s financial plan. By proactively reviewing policies, advisors can help clients avoid leaving money on the table and strengthen relationships.
4. Not Every Client Is a Fit—But Many Are Worth Reviewing
   Clients who are typically 65+ with policies of meaningful value may be good candidates. Even if a policy does not qualify, the evaluation ensures informed decision-making.
5. The Process Is Straightforward
   The process typically involves policy review, market evaluation, offer presentation, and closing. Working with a partner helps ensure efficiency and transparency.
6. Life Settlements Enhance the Advisor Toolkit
   Life settlements provide an additional planning tool that helps advisors unlock value and deliver more comprehensive solutions.

Bringing It Back to Your Clients

For many advisors, the biggest takeaway is simple:

If a client is considering lapsing or surrendering a policy, it’s worth having it reviewed.

This small step can uncover opportunities that might otherwise be missed—and ensure clients are making the most informed financial decisions possible.

Start the Conversation

If you have a client who may no longer need their life insurance policy, our team at LCX Life can help evaluate whether a life settlement is an option.

There is no cost or obligation to review a policy.