The Case for Life Settlements in Today’s Market

Lisa Rehburg is President of Rehburg Life Insurance Settlements and a longtime advocate for helping policyholders uncover value in life insurance they no longer need. In her work, she shows brokers how an overlooked policy can become a practical solution for clients and a new source of revenue for the advisor. This conversation comes from a recording between Lisa Rehburg and California Broker Magazine CEO Phil Calhoun. The discussion focuses on how life settlements work, when they fit, and why they matter for brokers serving aging clients, business owners, and Medicare and group benefits households.

Life Settlements Create a New Client Option

Rehburg opened the conversation by framing life settlements as a practical way to help clients who no longer want or need a policy. She stressed that brokers do not need to be life insurance experts or even the writing agent to begin the conversation. “You do not need to be the writing agent on a client’s life insurance policy to help them,” she said, adding that it can be a “win, win, win for everybody.”

Her main point was simple: A large number of seniors still own life insurance, yet many will eventually let those policies lapse or surrender them. Rehburg said the awareness gap is enormous, and that most policyowners do not know they have another option. In her view, that makes life settlements less of a niche transaction and more of an overlooked client service tool.

She tied the opportunity directly to brokers’ day-to-day work with seniors. As Medicare and group plan conversations increase during busy seasons, life insurance often surfaces naturally. That creates a chance to ask whether a policy still serves its original purpose or has become a financial burden.

Why Clients Sell

Rehburg opened the conversation by framing life settlements as a practical way to help clients who no longer want or need a policy. She stressed that brokers do not need to be life insurance experts or even the writing agent to begin the conversation. “You do not need to be the writing agent on a client’s life insurance policy to help them,” she said, adding that it can be a “win, win, win for everybody.”

Her main point was simple: A large number of seniors still own life insurance, yet many will eventually let those policies lapse or surrender them. Rehburg said the awareness gap is enormous, and that most policyowners do not know they have another option. In her view, that makes life settlements less of a niche transaction and more of an overlooked client service tool.

She tied the opportunity directly to brokers’ day-to-day work with seniors. As Medicare and group plan conversations increase during busy seasons, life insurance often surfaces naturally. That creates a chance to ask whether a policy still serves its original purpose or has become a financial burden.

“A large number of seniors still own life insurance, yet many will eventually let those policies lapse or surrender them.”

Term and Permanent Policies

The interview spent considerable time on policy types because, as Rehburg explained, the market behaves differently than traditional life insurance sales. Term policies, she said, are often attractive when they are still convertible to permanent coverage. That convertibility gives buyers more certainty because they know the policy can continue beyond the term period. Permanent policies such as universal life and whole life can also be sold, but they are often driven by cost and cash value issues. Universal life, Rehburg said, is the most common product she sees in the settlement market. Whole life can be more difficult because premiums are generally higher and cash values are often larger, which can make the policy more expensive for a buyer to carry.

Why Brokers Matter

One of Rehburg’s strongest messages was that brokers create competition, and competition improves outcomes for clients. She contrasted direct-to-buyer marketing with brokered sales, saying direct calls often lead to lower offers because the buyer faces no competition. “Leverage is our superpower,” she said. That point matters for California brokers who already understand the value of presenting multiple options in other lines. Rehburg’s argument is that life settlements work the same way. Brokers bring market discipline, and that can materially increase proceeds for the client.

She also noted that brokers are paid by the buyer after a transaction closes, not by the client writing a separate check. For producers serving Medicare, senior life, and group markets, that can create a new revenue stream while solving a problem the client already has.

Practical Sales Uses

Rehburg repeatedly returned to the idea that life settlements should be brought up during annual reviews and policy checkups. She suggested asking clients whether a policy is still doing its job after major life changes like divorce, retirement, the death of a spouse, or changes in budget. She also recommended asking whether a client is struggling to keep premiums current.

Her advice was not to force the conversation, but to treat life settlements as another planning tool. If a client is about to lapse or surrender a policy, she said, that is the moment to ask whether the policy has sale value. In many cases, the answer may be yes. For experienced California brokers, that means life settlements can fit into existing client conversations without changing the overall business model. Rehburg’s view is that the opportunity is strongest when the policy is unwanted, the premiums are painful, and the client’s health profile supports a buyer’s interest.

Visit and Connect

Rehburg closed by encouraging brokers to start with a simple policy review and free, no-obligation appraisal. She said agents can reach out with policy details, refer clients directly, or join a conference call to determine whether a case is a good fit. For more information, brokers and advisors can visit Rehburg Life Insurance Settlements online, review the firm’s FAQs and testimonials, or contact Lisa Rehburg directly to discuss a specific policy. Her central message was direct and memorable. “Client doesn’t want their life insurance policy anymore. Call me.”

A large number of seniors still own life insurance, yet many will eventually let those policies lapse or surrender them.