Understanding the parties involved

When a policy owner decides to explore whether selling a life insurance policy is a good option for their unique circumstances, the owner or his/her financial advisor should start the process by contacting a member of the Life Insurance Settlement Association who is either a life settlement broker or provider.

WHY LIFE SETTLEMENTS - LIFE POLICY OWNERS - GETTING STARTED
LISA - About Consumer Benefits

Consumer Advisors:

  • Life settlements can be complex financial transactions and are generally conducted on behalf of clients by experienced professional advisors.
  • When representing a client, financial professionals have a duty to represent the best interests of that client.
  • Compensation for service can be paid by fee or, if licensed, by commission.
  • Financial professionals recognize that life settlement regulation varies by state. It is important to know which laws and regulations – if any – apply in your state.

It’s possible to sell your policy through a Life Settlement Broker or Provider

Life Settlement Brokers:

  • Connects the sellers of an insurance policy with buyers.
  • They represent the policy owner and negotiate the offer that best serves the needs of the seller, which may be accepted or rejected by the policy owner.
  • They owe a fiduciary duty to the policy owner.
  • A Broker does not include an attorney, certified public accountant or financial planner retained in the type of practice customarily performed in their professional capacity to represent the owner whose compensation is not paid directly or indirectly by the Provider.

Life Settlement Provider:

  • Specializes in purchasing life insurance policies in the life settlement market.
  • Providers normally raise capital from institutional investors.
  • Working directly with a provider may eliminate intermediaries and expedite the transaction.

Speak with a Life Settlement Professional

SEARCH PROFESSIONALS

Stay Informed of Industry News

Latest Blogs

10/15/2020

Explaining Life Settlements - What Policyholders Need to Know

Do you have a life insurance policy that you’re about to let lapse? Are you 65 years or older? 

Read More
09/16/2020

5 Tips for a Successful Life Settlement Negotiation

There are a lot of factors that go into determining the value of a life settlement. However, none are as important as your ability to…

Read More
03/03/2020

LISA Endorses H.R. 5958, the “Senior Health Planning Account Act”

The Life Insurance Settlement Association (LISA) today endorsed H.R. 5958, the “Senior Health Planning Account Act”, introduced by Rep. Brian Higgins (D-NY) and Rep. Gregory…

Read More
11/20/2019

Get Your Team on the Court

The life settlement industry is undergoing a period of steady growth, fueled by demographic tailwinds and increased consumer awareness of the life settlement option as…

Read More