The post Spotting the Signs of Financial Elder Abuse appeared first on Ashar Group.
]]>
As a financial advisor with senior clients, you frequently help them plan for retirement, determine how to pay for long-term care, and advise family members on choosing a guardian or power of attorney.
Unfortunately, another situation that may come up with your older clients is elder financial abuse. Perpetrated through coercion, deception, or by simply taking advantage of a person’s diminished physical or mental capacity, elder financial abuse can encompass a multitude of behaviors: theft of valuable items, forged signatures on legal documents, or forced access to bank accounts, among other things.
Sadly, if your client is being financially abused, chances are it’s by someone your client knows well. Usually, these acts are done by a family member or caregiver - someone who is both trusted and has access to the older person.
As an advisor, you’re uniquely positioned to spot this cruel behavior early on and help to stop it. Keep an eye out for these subtle signs of elder financial abuse.
Sudden changes to accounts
If your client hasn’t touched an account in years and suddenly wants to make a big withdrawal, you may want to probe more closely.
It could be that the client has thought the decision through and has a good reason for the change. However, it could also be a sign that someone else is trying to get your client’s money. If you see a change like this, it’s best to gently ask why it was made. It could be that your client isn’t even aware of it - which, of course, is a major red flag.
No memory of financial-related matters
Most of us forget small things now and then, but if your client doesn’t remember something like signing a check or authorizing a withdrawal, it’s time to look more closely.
This could certainly be a sign that abuse or fraud is being perpetrated, but it could also signal a worrisome decline in your client’s mental faculties. Either way, the client’s finances are likely at risk.
The appearance of a new “best friend” or formerly estranged family member
Older people who live alone and have few close friends or family members nearby are at a greater risk for financial abuse. Unscrupulous people who prey on the elderly can single these people out and “befriend” them in attempts to get at their assets.
For example, your client could suddenly want to make a large cash gift to a person you’ve never heard of before - a long-lost niece, or a neighbor who’s become a close friend in a very short time.
This can put you, as an advisor, in a difficult position. You don’t want to sit back and watch your client drain his account, but you can’t tell your client outright that you think this new person just wants his money.
While client confidentiality laws can make it difficult to take action, financial advisors are legally permitted to report suspected abuse if doing so will prevent actual or potential fraud. Depending on your state’s laws, you could be able to bring in a third party, like a client’s family member or at least the state’s adult protective services division.
Each state’s laws are different, so make sure you know your own state’s laws regarding privacy and elder financial abuse.
Sudden decision to grant someone power of attorney
A serious sign of financial elder abuse is a client’s sudden decision to grant power of attorney to someone.
If your client isn’t seriously ill, hasn’t discussed this option with you at length, or wants to grant power of attorney to someone you’ve never heard him or her mention, it may be time to ask them why they feel the need to do this.
There’s a chance they don’t understand just how much control that gives the person with power of attorney. Or perhaps they’ve been convinced that they don’t have the decision-making ability to manage their own finances any longer.
Elder financial abuse can be a tricky situation to navigate, but financial advisors owe it to their clients to be on the lookout. When spotted early, the damage from this kind of exploitation can be minimized.
Don't let a life insurance policy lapse without checking its value
One often-overlooked form of financial harm to seniors is the quiet lapse of life insurance policies that could have been worth more than their cash value. Sometimes this is at the request of family members who are financially supporting an aging loved one and can no longer afford to pay the premiums to keep the coverage in force.
A life settlement is the sale of an existing life insurance policy for more than the cash surrender value and less than the death benefit.
Before any policy is allowed to lapse or surrendered for cash value, it's worth asking: Does this policy have life settlement value?
In 2025, policy owners received, on average, 9x the cash surrender value through a life settlement.
2025 Life Settlement Market Industry Data Collection Survey
As a fiduciary, ensuring your client knows this option exists is part of protecting their financial security. It's also worth noting: if a client suddenly wants to lapse or surrender a large policy and can't explain why, that itself could be a sign worth investigating.
Click here to learn more about how a life settlement can help your clients.
If you're working with a senior client whose policy may be at risk of lapsing or being surrendered, contact Ashar Group to explore whether a life settlement could preserve or unlock value for your client.
Don't miss our recent blog on Key Considerations: Existing Life Insurance in Gray Divorce.
Ashar Group is a nationally licensed life settlement firm that protects policy owners' best interests by conducting a competitive policy auction to maximize value. Ashar Group does not sell life insurance, manage assets, or purchase policies. We are an independent resource for fiduciary advisors and their clients, specializing in life insurance valuation for planning purposes.
The post Spotting the Signs of Financial Elder Abuse appeared first on Ashar Group.
]]>Many business owners (and advisors) treat life insurance as just another expense. It’s often viewed as a necessary protection tool, and once the box is checked, it’s filed away and never revisited. Life insurance should be treated as an asset that can be valued like real estate, investments, or antiques. In succession planning, M&A, retirement, exit strategy and continuity planning, life insurance isn't just a protection tool.
The post Beyond Protection: Are you Treating Life Insurance Like a Business Asset? appeared first on Ashar Group.
]]>
Many business owners (and advisors) treat life insurance as just another expense. It’s often viewed as a necessary protection tool, and once the box is checked, it’s filed away and never revisited. Life insurance should be treated as an asset that can be valued like real estate, investments, or antiques. In the world of succession planning, M&A, retirement, exit strategy, and continuity planning, life insurance isn’t just a protection tool; it can be leverage that impacts business planning outcomes.
Ashar Group is a nationally licensed sell-side life settlement firm that protects policy owners’ best interests by facilitating a competitive policy auction to deliver the best value to sellers. We are an independent resource for fiduciary advisors and their clients, specializing in life insurance valuation for planning purposes. Ashar Group does not sell life insurance, manage assets, or purchase policies.
The post Beyond Protection: Are you Treating Life Insurance Like a Business Asset? appeared first on Ashar Group.
]]>The post Key Considerations: Existing Life Insurance Policies in Gray Divorce appeared first on Ashar Group.
]]>
Gray divorce is defined as a divorce or separation that occurs later in life, typically at age 50 or beyond. Studies have shown that divorce rates for those aged 65 and older have tripled since 1990.
This phenomenon often involves financial challenges far greater than those in earlier-life divorces. In general, there are often more assets to consider, but one in particular is life insurance. Life Insurance policies are valuable financial assets, not just protection vehicles, and should be valued as part of the asset review in divorce.
KEY CONSIDERATIONS
Is the coverage still needed?
If one spouse still needs income protection, or if the policy is intended to secure support obligations, such as alimony, pension sharing, or maintenance, the policy may still be essential.
Is the insured still insurable?
In cases of gray divorce, health changes may be a factor to consider. If the insured is now uninsurable, the existing policy may be even more valuable to keep.
If it is determined that the policy should remain in force, the divorce settlement should outline policy ownership, premium obligations, and beneficiary designations.
Does the original policy need to be replaced?
In some scenarios, ownership and beneficiary structures become unworkable in divorce, generally when spouses do not want to retain any financial ties. In these cases, new separate policies might replace joint or survivorship policies.
Life insurance should be valued before lapse, surrender, or any material changes are made to the policy.
Does the policy have value over cash surrender value?
In situations of replacement or where there is no longer an economic need, neither spouse wishes to keep paying premiums, or the policy is underfunded, it may be decided to cancel the existing policy. Before the policy is lapsed, surrendered, or materially changed, it should be reviewed for fair market value.
Especially in a gray divorce, because the insured(s) are older and may have health issues, the policy may have significant value above its cash surrender value if sold as a life settlement.
A life settlement is the sale of an existing life insurance policy for more than the cash value and less than the death benefit. All types of Universal Life and Convertible Term policies are very attractive to institutional buyers in the secondary market.
In 2022, life settlements generated 5x more than the cash surrender value on average.
Selling a life insurance policy should be explored when the need for coverage no longer exists, a life settlement can generate more than the cash value, or funds are needed for current financial needs.
Representation is essential when considering a life settlement. Many resources advertising on TV are direct buyers looking to purchase the policy for the least amount possible. To guarantee the best offer, work with an independent, sell-side advisory firm whose fiduciary duty is to the policy owner.
Ashar Group is a nationally licensed life settlement firm that protects the best interests of policy owners by creating a competitive policy auction to deliver the best value to the seller. Ashar Group does not sell life insurance, manage assets, or purchase policies. We are an independent resource for fiduciary advisors and their clients, specializing in life insurance valuation for planning purposes.
The post Key Considerations: Existing Life Insurance Policies in Gray Divorce appeared first on Ashar Group.
]]>The post Trust & Estates: How Charities Decide to Keep, Surrender, or Sell Donated Life Insurance appeared first on Ashar Group.
]]>
For some charities, life insurance is a taboo subject, and they often surrender donated policies without any analysis. With approximately 51% of the U.S. population owning life insurance, it’s too large an asset class to omit from charitable planning discussions with donors, particularly considering the tremendous opportunities.
Ashar Group is a nationally licensed life settlement firm that protects the best interests of policy owners by creating a competitive policy auction to deliver the best value to the seller. Ashar Group does not sell life insurance, manage assets, or purchase policies. We are an independent resource for fiduciary advisors and their clients, specializing in life insurance valuation for planning purposes.
The post Trust & Estates: How Charities Decide to Keep, Surrender, or Sell Donated Life Insurance appeared first on Ashar Group.
]]>The post Life Settlements: How Family Offices are Rethinking Life Insurance Reviews appeared first on Ashar Group.
]]>
What would you do if you could free up $600,000 a year and unlock $5 million in hidden value without selling a single traditional asset? That was the question facing a family office managing the estate of an 85-year-old patriarch who had spent a lifetime building a family legacy...
Read the full Wealth Management 2025 Midyear Outlook
How do you make a recommendation about any asset without first knowing its value?
Ashar Group is a nationally licensed life settlement firm that protects the best interests of policy owners by creating a competitive policy auction to deliver the best value to the seller. Ashar Group does not sell life insurance, manage assets, or purchase policies. We are an independent resource for fiduciary advisors and their clients, specializing in life insurance valuation for planning purposes.
The post Life Settlements: How Family Offices are Rethinking Life Insurance Reviews appeared first on Ashar Group.
]]>The post Three Values of Life Insurance (beyond the death benefit) appeared first on Ashar Group.
]]>
Life Insurance is an Asset
A life insurance policy is an asset that has the same legal rights as other assets - including appraising and selling. Similar to real estate, value is driven by competition between interested parties.
Life insurance is typically purchased to cover a specific need or when a significant life event occurs, such as getting married, buying a house, or having children. The purpose of life insurance is to provide a lump sum payout in the amount of the death benefit, or face amount, upon the insured's passing. But what happens when the reason the policy was purchased no longer exists, and the policy owner wants to exit the policy?
Value #1: Cash Surrender Value
For permanent life insurance (Whole Life, Universal Life, Guaranteed Universal Life, Indexed Universal Life, and Variable Universal Life), cash builds up in the policy as premiums are paid. This is called the cash value. One option is surrendering the life insurance policy to the carrier for the cash surrender value (CSV). The CSV is often referred to as the carrier purchase value. The CSV is much lower than the policy’s fair market value. Term policies do not have cash value, and if the premium is not paid, the policy lapses, with nothing recouped by the policy owner.
Value #2: Opening Bid (or Direct-Buyer Offer)
There are other interested parties in purchasing life insurance policies besides the insurance carrier. Institutional buyers, such as state pension plans, private equity, asset managers, endowment funds, and others, purchase policies as a diversified asset class. Many of these firms have a buyer who directly represents them and their interests. These buyers advertise to consumers with the goal of purchasing their policy for more than the CSV but less than the fair market value.
Buyers have a duty to the funds they represent to ensure the buyers' best interests are protected. This means purchasing the policies at a lower rate, so the fund has a higher rate of return. To achieve a high rate of return, the offer to the policy owner must be lower than the fair market value.
Broker-Negotiated Auction Value = Fair Market Value (FMV)
The final purchase price for a life insurance policy is the broker-negotiated auction value, or the fair market value. Using a broker, policy owners often receive 8 - 12 times more than the CSV. But how do brokers achieve such high offers?
As a life settlement broker, we use our proprietary auction platform to generate multiple bids for each policy from various funds. Through this process, our clients receive bids that far exceed those of the other two possible values. For example, we recently helped a 90-year-old family matriarch sell her policy.
- $3M Universal Life Policy
- CSV = $323K
- Opening Bid = $400K
- Policy Auction Value = $1.72M (26 bids)
At Ashar Group, we specialize in securing fair market value for our clients. To learn more about the possible value of your life insurance policy, take our policy value quiz or contact us today.
Ashar Group is a nationally licensed life settlement firm that protects the best interests of policy owners by creating a competitive policy auction to deliver the best value to the seller. Ashar Group does not sell life insurance, manage assets, or purchase policies. We are an independent resource for fiduciary advisors and their clients specializing in life insurance valuation for planning purposes.
The post Three Values of Life Insurance (beyond the death benefit) appeared first on Ashar Group.
]]>The post Planning Smarter for Longer with Life Settlements appeared first on Ashar Group.
]]>
...And the youngest of them turn 61 this year.
As the financial landscape continues to evolve, so too must the approach of today's financial advisor. Gone are the days when retirement planning stopped at age 85. With more clients living into their 90s and beyond, comprehensive planning must now stretch across longer time horizons. The means anticipating new risks, uncovering new opportunities, and using tools like life settlements to help clients maximize their long-term financial security.
The Longevity Revolution
Advancements in healthcare, improved lifestyles, and greater awareness of wellness have all contributed to a significant rise in life expectancy. According to a recent article, many clients - especially those in higher-income brackets - have a very real chance of living into their 90s or even longer. This longevity shift can strain retirement income projections and long-term care strategies if not properly considered.
Advisors can no longer plan to age 85. Retirement strategies must now account for 30 to 40-year retirements, demanding smarter planning, more flexible assets, and more nuanced conversations with clients.
The Cost of Living Longer
Living longer is a gift - but it comes with a price tag. Increased healthcare costs, long-term care, inflation, and the risk of outliving assets are very real concerns for retirees. Clients fear becoming a financial burden to their families or having to sacrifice quality of life late in retirement.
It's crucial for advisors to start the longevity conversation early. Educating clients about the financial realities of extended lifespans can help them make more informed, proactive decisions. It's also a natural segue into evaluating underutilized assets that could support their long-term needs, such as life insurance policies.
Life Settlements: A Longevity-Focused Strategy
An often overlooked but powerful tool in the longevity toolkit is a life settlement - the sale of an unwanted or unneeded life insurance policy for a lump sum that exceeds the cash surrender value (and is less than the death benefit). For clients in their 70s, 80s, and even 90s, this can be a strategic move that unlocks hidden value in a policy that no longer fits their goals.
Consider a client who took out a large policy to protect a growing family or business, but now finds those needs have changed. Instead of lapsing the policy or surrendering it for minimal value, a life settlement can provide immediate funds that support long-term care needs, retirement lifestyle, or estate planning goals.
Clients are often unaware of the option (or are duped by direct-to-consumer advertising), and their advisors are in the best position to educate them. When integrated into a comprehensive plan, life settlements can:
- Extend the longevity of retirement portfolios
- Make a difference between financial independence and dependence later in life
- Offset rising healthcare or long-term care costs and inflation while on a limited income
- Fund other planning opportunities, like investments or charitable giving
Trusted Advisors Plan for the Long Game
Advisors who ignore the longevity risk are not just missing a piece of the puzzle, they are missing a core component of modern financial planning. By acknowledging longer lifespans and incorporating strategies like life settlements, advisors can offer peace of mind and financial confidence that lasts a lifetime - and beyond.
As the industry continues to shift, advisors will stand out not just for managing assets, but for managing expectations and delivering solutions that evolve as life gets longer.
Ashar Group is a nationally licensed life settlement firm that protects the best interests of policy owners by creating a competitive policy auction to deliver the best value to the seller. Ashar Group does not sell life insurance, manage assets, or purchase policies. We are an independent resource for fiduciary advisors and their clients specializing in life insurance valuation for planning purposes.
The post Planning Smarter for Longer with Life Settlements appeared first on Ashar Group.
]]>The post How can my client be uninsurable and not qualify for a life settlement? appeared first on Ashar Group.
]]>
In a nutshell, your client can have some serious health issues that disqualify them for new insurance, but still have a relatively long life and therefore not qualify for a life settlement. It's because insurance carriers are underwriting different risk factors at policy issue compared to institutional buyers who purchase existing life insurance policies.
Mortality Risk vs. Longevity Risk
Life insurance carriers are concerned about mortality risk - the risk of the insured passing too soon. Their underwriting places emphasis on health and lifestyle debits to determine life expectancy. They look at the worst-case scenario.
Insitutional life settlement buyers are concerned about longevity risk - the risk of the insured living too long. Their underwriting looks at the debits, but also health and lifestyle credits. They focus on the best-case scenario.
Factors that Influence Calculations
There are 2 main factors institutional buyers consider when determining whether the purchase of an existing life insurance policy is a good investment:
- What is the cost of ongoing premiums? Buyers favor policies such as universal life or convertible term policies because they can manipulate the annual cost by paying the minimum premium needed to keep the policy in force. If the policy you present has high premiums or static premiums, it makes it more challenging to get offers.
- How long will premiums have to be paid? Translation: How long is the insured expected to live? Factors such as wealth, education, travel, strong relationships, family history of longevity, habits, and access to quality health care have all been proven to extend life expectancy. Also, life expectancy gets longer as you reach certain age milestones. If your client lives to age 65, then there is a good chance that his/her life expectancy increases to age 83-85. If the same client lives to age 70, then there's a better chance of getting to age 90, and so on.
Relationship Between Premium and Life Expectancy
It's all about the math. In some cases, high premiums can kill a life settlement deal for an insured with health issues that would lead to a decline for new insurance. For example, if the policy has an 8%-10% premium ratio (annual premium/face value), then the life expectancy of the insured would have to be shorter for it to be attractive to buyers. Conversely, a policy with a low premium ratio (1%-3%) allows for a longer life expectancy and is still considered a good investment for buyers.
Maximizing Life Settlement Value with a Policy Auction
The best way to ensure your client gets the most for their unneeded/unwanted life insurance policies in a life settlement is to execute an auction that forces buyer competition. Buyers are looking for the best rate of return for the investors they represent. Just like with real estate, when buyers compete, the client (and the advisor) win!
Ashar Group is a nationally licensed independent seller’s representative. We sit on the same side of the table as the planning professional and their client, ensuring the policy owner’s best interests are protected. Because we don’t purchase the policies, our sole responsibility is to the client. Through our auction platform, we create competition between buyers to ensure policy owners are getting the best offer.
PRACTICE TIP: Ask these three questions of your life settlement resource to ensure your client has independent representation in the life settlement transaction:
- Are you licensed to represent the seller or the investor?
- Do you facilitate a transparent policy auction between independent life settlement providers representing multiple institutional funds?
- Does your organization purchase policies, sell life insurance, or manage assets?
Learn more about the difference between sell-side and buy-side.
Ashar Group is a nationally licensed life settlement firm that protects the best interests of policy owners by creating a competitive policy auction to deliver the best value to the seller. Ashar Group does not sell life insurance, manage assets, or purchase policies. We are an independent resource for fiduciary advisors and their clients specializing in life insurance valuation for planning purposes.
The post How can my client be uninsurable and not qualify for a life settlement? appeared first on Ashar Group.
]]>The post Unlocking the Benefits of a Life Settlement Auction appeared first on Ashar Group.
]]>
Over the past two decades, a reliable secondary market for life insurance has emerged with an auction process that can uncover a policy’s fair market value (FMV), which can be vastly different from its current cash value. Life insurance is an asset your clients own. When was the last time it was appraised? Like your clients’ other ordinary property, it is important to value their life insurance property before they materially change it or terminate it.
Ashar Group is a nationally licensed life settlement firm that protects the best interests of policy owners by creating a competitive policy auction to deliver the best value to the seller. Ashar Group does not sell life insurance, manage assets, or purchase policies. We are an independent resource for fiduciary advisors and their clients specializing in life insurance valuation for planning purposes.
The post Unlocking the Benefits of a Life Settlement Auction appeared first on Ashar Group.
]]>The post Monetize Life Insurance to Boost AUM appeared first on Ashar Group.
]]>By Jamie L. Mendelsohn | EVP | Ashar Group
Article published in 2025 Wealth Management Market Outlook
By evaluating clients’ existing policies, advisors can uncover opportunities to convert underperforming or unneeded life insurance into liquid assets through the life settlement solution that can be reinvested to align with clients’ broader financial goals.
Ashar Group is a nationally licensed life settlement firm that protects the best interests of policy owners by creating a competitive policy auction to deliver the best value to the seller. Ashar Group does not sell life insurance, manage assets, or purchase policies. We are an independent resource for fiduciary advisors and their clients, specializing in life insurance valuation for planning purposes.
The post Monetize Life Insurance to Boost AUM appeared first on Ashar Group.
]]>