Work With A Life Settlement Broker
Generally, a life settlement broker is a person who, for compensation, solicits, negotiates, or offers to solicit or negotiate, a life settlement contract. If you are looking to sell a life insurance policy, you will benefit by going through this a broker. In most states, a person must be licensed to act as a life settlement broker and must take continuing education courses.
A life settlement broker, in exchange for a fee, will shop a policy to multiple providers, much as a real estate broker solicits multiple offers for one’s home. While it is the broker’s duty to collect bids, it is still incumbent on the advisor to help the client evaluate the offers against a number of criteria including offer price, stability of funding, privacy provisions, net yield after commissions, and more.
As part of the purchase transaction, the investor assumes responsibility for paying all future premiums required to keep the insurance policy in force.
Compensation arrangements vary significantly and should be fully disclosed and understood to determine if engaging a life insurance broker will benefit the client.
In states that regulate life settlements, there are laws pertaining to procedure, privacy, licensing, disclosure, and reporting, which if violated, may subject the broker to penalties. For instance, the state of Texas provides strict regulation for the industry.
If you have any questions, or want to find out how much your life insurance policy is worth, don’t hesitate to contact Global Life Settlements today.