- 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.