Life Settlements – The Role Of Your Broker

The life settlements market is for the most part an unregulated one. This means you enter it at your own risk. Trying to sell a life insurance policy without representation is somewhat akin to trying to do open heart surgery on yourself…without anesthesia. It isn’t going to go well. So, what is the role of your broker?

A life settlement is the process of selling a life insurance policy for a lump sum investment. It sounds simple and in some ways it is. In others, however, it is complex. This is primarily due to the fact the buyers are investors. That doesn’t make them evil by any stretch of the imagination. What it does make them, however, is a group of individuals trying to get the best deal they can. That means they will try to push the price down, add fees and the like. You, in turn, must understand what is happening and counter offer to overcome this. This is where your broker comes in.

A life settlement broker is a professional who is well versed in the industry, but independent of any investors. The broker should work for only one party – you…and agree to do so in writing. Just as important, you want the broker to work on a percentage commission. This is incredibly important. Why? The broker is getting paid on how much they sell your policy for. It is thus in their best interest to get the maximum possible, which is also in your best interest!

What exactly does your broker do? Well, there is the rather obvious step of soliciting offers from investors. Beyond this, however, the broker acts as a buffer between you and the investors so that good cop-bad cop scenarios can be implemented in negotiations. On a more practical level, the broker also takes care of all the paperwork involved including the collection and process of any policy requirements by the insurance company. Finally, the broker is going to act as a sound board for you to discuss issues and get advice on the nature of the offers you start receiving.

Selling a life settlement is an unregulated act. As a result, it is critical you have a life settlement broker standing up for you in the transaction. Make sure to get one.

Thomas Ajava writes for LifeSettlementLifeInsurance.com - providing independent life settlement life insurance broker services to insurance policy holders.