A Financial Advisor’s Fiduciary Duty and Life Settlements
January 13, 2021 by Lucas Siegel
Life settlements are growing in popularity, even as financial advisors and insurance brokers are reluctant to discuss these transactions with their clients. That reluctance, however, is problematic — particularly if you are in a fiduciary role. Because life settlements can generate substantially more cash for the policyholder than a surrender or lapse of the insurance, not presenting the life settlement as an option could constitute a breach of fiduciary duty.