Top 5 Reasons to Work with a Life Insurance Settlement Professional
Thursday, February 11, 2021
Section: Financial Advisors

There are many reasons to work with a life insurance professional and your clients may be asking for more information on the options of working with a specific life insurance professional. How do you provide all the information for your client that is simple and straightforward? This article can help. Let’s go over the top 5 reasons to work with a life insurance professional. 

Direct to Consumer: Life Insurance Settlement Professional

Direct to consumer buyers work directly with consumers and policyholders to settle their life insurance policy directly. Choosing one of these buyers will offer you complete control of your settlement and will allow you to avoid paying a commission to a broker. 
The process for engaging each direct to consumer company will differ. After a need for a settlement is identified by the policyholder, an application for settlement will need to be completed. Head to your preferred firm’s website and follow their instructions for selling a life insurance policy. 



Life Insurance Settlement Broker

Instead of navigating the number of direct to consumer settlement companies, a life settlement broker will do all the heavy lifting. They will usually have a full understanding of popular settlement companies and will be able to match the policyholder with one that meets their needs. 
Once the policyholder identifies a need for a settlement, they will engage a broker. After a brief consultation, brokers will be able to fill settlement applications and provide necessary documentation on their behalf. Settlement companies will review the submitted application and provide an offer for the policyholder. Once a settlement is accepted, paperwork is signed and submitted, then funds are transferred to the selling policy owner.


How Can a Life Insurance Settlement Professional Help

1. By helping you find a suitable policy

The complexity of finding the right insurance policy is one of the top reasons many skip out on life insurance. With a life insurance settlement professional on your side, this concern will be a thing of the past. They’ll take into account age, health condition, as well as any dependents in order to match you to the best company and policy for you. 

2. Guide you through state and federal regulations

Contrary to popular belief, the life insurance settlement industry is heavily regulated and upheld by the Supreme Court of the United States. As such, there can be quite a bit of state and federal red tape and paperwork involved with receiving a settlement. Instead of trying to navigate this bureaucracy alone, an experienced life insurance settlement professional will be more than happy to help policyholders save both time and potential headaches. 

3. Handle your settlement application

The life insurance settlement application can be quite involved, especially for those who are not familiar with the industry. Additionally, the chosen settlement firm may require more information after your application is sent in. A life insurance settlement professional will be able to handle this process, as well as the necessary back and forth that may arise after submission.

4. Assist you if your claim gets denied

After completing an application, it will be approved or denied within a predetermined amount of time. If it ends up getting denied, your life insurance settlement professional will be able to tell the policyholder why and help them shop around for additional companies. When trying to navigate this space alone, it can become very discouraging if they’re not able to find the right settlement firm. 

5. Navigate specific health concerns

No matter how rare a particular health condition may seem to be, it’s likely that an experienced life insurance settlement professional has dealt with it multiple times before. Hiring the right life insurance settlement professional will allow policyholders to survey all the options available to you. The right professional will know which insurance companies are more likely to approve difficult medical histories. 
When assisting your clients, as a life insurance settlement professional, it is crucial to explain and guide your client through each step. When explaining the importance of working with a life insurance settlement professional, keep these five reasons in mind. 
Want to learn more about working with a life insurance settlement professional? Reach out to an authorized LISA member today.