In many cases, financial professionals will have this duty. For example:
- With a term policy, an agent may need to offer a Life Settlement as an alternative to surrendering or lapsing the policy.
- With a trust owned policy, studies have shown that over 50% of advisors who reported acting as trustee stated they do no have guidelines and procedures for handling life insurance. Furthermore, over 75% of family or friends that act as trustees have not reviewed life insurance policies located in trusts within the last 5 years. (WHO’S MINDING THE TRUST-OWNED INSURANCE?, TRUST & ESTATES, 5/2003)