For licensed advisors, planners and wealth managers

Give your senior clients another option for unwanted life insurance

Before a policy is surrendered or lapses, we help you quickly see whether a life settlement or policy-backed advance could create more value for your client.

CLS Advisor Tool – Local

When this matters in real client conversations

These situations often arise informally in the course of client reviews, family discussions, or periods of uncertainty.

Client is considering letting the policy lapse.

Common Scenario

When a client no longer sees the original purpose of a policy, lapse or surrender can feel like the simplest option. Before taking that step, it can be useful to understand whether the policy still has any economic value that’s worth considering.

A surviving spouse no longer needs the coverage, but the premiums are becoming difficult to justify.

Common Scenario

Following a death or major life change, insurance needs often shift. In some cases, reviewing alternatives can help determine whether an existing policy can better support the client’s current financial priorities.

Adult children are questioning why premiums are still being paid.

Common Scenario

Family members may not be familiar with the original planning rationale behind an older policy. An objective assessment can help facilitate clearer conversations and align decisions with today’s circumstances.

A policy was originally structured for estate or tax planning that’s no longer relevant.

Common Scenario

Over time, changes in asset values, tax exposure, or ownership structures can leave life insurance policies misaligned with their original intent. Re-evaluating the policy can help clarify whether it still serves a meaningful role.

In many cases, the next step is simply to understand whether a policy is worth exploring further — before it’s ruled out.

Why advisors use life settlements as a planning option

When a life insurance policy no longer aligns with its original purpose, advisors may consider this as one of several ways to responsibly evaluate the policy’s economic value.

Structures focused on the policy — not personal guarantees

Obligations are limited to the policy itself rather than creating new personal liabilities for the client, helping keep the analysis contained and risk-aware.

Complements existing planning strategies

This option is typically evaluated alongside more familiar alternatives such as surrender, premium reduction, internal loans, or policy restructuring and not as a replacement for them.

A documented, underwriting-driven process

Assessments are based on underwriting and policy documentation rather than assumptions. Advisors value having a clear framework, defined inputs, and an auditable paper trail.

Works alongside legal and tax advice across Canada

While structures differ between Quebec and the rest of Canada, the analysis is commonly done in coordination with legal and tax professionals to ensure alignment with the client’s broader planning context.

Suitability depends on the client’s objectives, policy terms, health information, and professional advice.

Resources for advisors

These resources are designed to support advisor-led conversations with clients and their families.
You’re welcome to share them as part of your planning process.

Client explainer

Plain-language overview of life settlements and policy-backed advances in Canada, written for clients and their families.

Intended for:

Clients and family members

Download PDF

FAQ for families

Answers common questions from spouses and adult children about process, risks, privacy, and outcomes.

Intended for:

Clients and family members

Download PDF

Process overview

High-level outline of next steps, documentation, underwriting, and typical timelines once a case moves forward.

Intended for:

Advisors and clients

Download PDF

Advisor whitepaper

In-depth overview of life settlements and policy-backed advances in Canada, including structure, considerations, and advisor use cases.

Intended for:

Licensed advisors and planners

Download PDF

How advisors approach these situations in practice

These examples illustrate how policy reviews are incorporated into broader planning discussions once a closer look is warranted.

When an estate-planning policy no longer matches reality

Estate planning drift

A client in their late 70s had been paying premiums on a permanent policy originally designed to equalize an estate. Over time, asset values shifted and prior transfers to children changed the original intent but the policy remained in force largely out of inertia.

An indicative review helped reframe the policy from a “legacy default” into an asset that warranted an explicit decision, rather than an automatic continuation or surrender.

Advisor takeaway

This created a clearer, defensible basis for revisiting a long-standing policy without disrupting the broader estate plan.

When premiums start competing with retirement flexibility

Retirement cash-flow pressure

A recently retired client in their 80s held a long-standing permanent policy funded during peak earning years. As income sources shifted, ongoing premiums began to feel more restrictive, even though the policy itself still appeared “fine” on paper.

An indicative assessment allowed the policy to be evaluated alongside retirement income projections, rather than as a separate or untouchable decision.

Advisor takeaway

The review made it easier to integrate insurance decisions into retirement planning conversations where cash flow mattered more than legacy alone.

When a joint policy needs to be reconsidered at retirement

Joint last-to-die complexity

A couple approaching retirement held a joint last-to-die policy established years earlier for long-term planning. While the original rationale still existed, their focus had shifted toward income stability and simplifying financial complexity.

A structured review provided a clearer view of how the policy could be treated under different scenarios, helping the couple explore trade-offs without framing the discussion as all-or-nothing.

Advisor takeaway

This helped normalize insurance review as part of retirement planning, rather than treating it as a separate or uncomfortable conversation.

Next steps

Use the triage tool to explore another scenario, or reach out if you’d like to discuss a specific client situation.

Run another case

Discuss a specific client situation

If you’d like to review structure, timing, or next steps for a particular case, our team is available to speak with you.

We’re happy to speak with you first, or join a call with your client if appropriate.

For licensed advisors only. Initial discussions are exploratory and non-binding.

For licensed advisors, planners and wealth managers

Give your senior clients another option for unwanted life insurance

Before a policy is surrendered or lapses, we help you quickly see whether a life settlement or policy-backed advance could create more value for your client.

These situations often arise informally in the course of client reviews, family discussions, or periods of uncertainty.

Client is considering letting the policy lapse.

A surviving spouse no longer needs the coverage, but the premiums are becoming difficult to justify.

Adult children are questioning why premiums are still being paid.

A policy was originally structured for estate or tax planning that’s no longer relevant.

In many cases, the next step is simply to understand whether a policy is worth exploring further — before it’s ruled out.

When a life insurance policy no longer aligns with its original purpose, advisors may consider this as one of several ways to responsibly evaluate the policy’s economic value.