It is a fiduciary responsibility to your client to explain all his options. Imagine the repercussions if he lets his policy lapse and finds out later that he could have received a handsome Life Settlement, which you knew (or should have known) and didn’t explain to him.

Sherwin P. Simmons of Steel Hector & Davis writes:

“ATTORNEY FIDUCIARY OBLIGATIONS: It seems clear that an attorney advising a client who is considering the surrender or other disposition of an unwanted or no longer needed policy has an affirmative duty to inform the client off a possibility of … life settlement possibilities."

INSURANCE COMPANY OBLIGATIONS: Some have suggested that the failure to advise policy owners of the existence of life settlement options runs counter to state law obligations of agents and the carriers to disclose material information to the owners.