In the Simplest orf terms, a Life Settlement Broker is a licensed professional who acts as an intermediary between potential Life Settlement buyers and Life Insurance Policy sellers whereby Life Settlement contracts are the sales of Life Insurance Policies to a third party. Selling A Life Insurance Policy is a lucrative alternative to letting the Life insurance Policy Lapse.

What is a Life Settlement Broker?

Licensed professionals who promote and negotiate the legal sale of life insurance policies by executing a life settlement contract are known as life settlement brokers. A life settlement, also known as a viatical settlement, is the sale of a life insurance policy to someone who wants to buy it as an investment. Rather than surrendering your life insurance policy and receiving the policy's cash value less any surrender costs, life settlement brokers assist you in selling your policy to a buyer willing to pay you more than the cash value to become the new owner of your policy and its death benefit.

People surrender their life insurance policies for a variety of reasons, including: not willing to make premium products any longer. As licensed financial professionals, the Life Settlement Brokers at Asset Life Settlements are more than capable of marketing and negotiating life settlement contracts.

 

Who does a Life Settlement Broker work for?

You are represented by a life settlement broker. They don't really buy your Life Insurance policy; instead, they present it to a number of possible buyers on your behalf. They have a legal and fiduciary duty to represent you to the best of their abilities throughout the procedure.

Life Settlement Brokers and the contracts they create for life settlements are generally governed by state legislation, which means that your broker must be licensed. Ask to see their license and any other paperwork they need to perform a transaction while interviewing a life settlement brokerage to represent you.

How do Life Settlement Brokers get compensated?

A commission is paid to your life settlement broker or viatical settlement provider, which is deducted from the proceeds of the life insurance policy sale. This commission is how they make a living and helps cover some of their company costs, such as underwriting and settlement valuation. Before you commit to working with a respectable life settlement broker, they will reveal all of their fees up front. You won't owe the life settlement broker a thing if you aren't offered what you think to be a reasonable price for your insurance. Some people try to sell their life insurance without the help of a life settlement broker on their own. Professional life settlement companies know how to make low-ball bids and pay you the least amount for your insurance possible.

Choosing an experienced Life Settlement Broker is essential

When choosing a Life Settlement Broker there are an assortment of factors which should go into the decision that you make. These factors or criteria can be broken down into 4 primary points which will assist you in your Broker decision:

1. Broker Licensing
   1. Take some time to learn about the licensing requirements for life settlement brokers in your state before you get started. You'll be able to rapidly dismiss any potential brokers who don't have the necessary licenses.
2. Broker Fees
   1. The fee you'll pay your life settlement broker for facilitating the transaction is usually calculated using three comminly used formulas. These formulas include the Face Value Percentage, The Life Settlement Offer Percentage and the Value Created Percentage.
3. Brokers Communication and Accessability
   1. Enlisting the services of a Life Settlement Broker is all about trust and understanding. You will have a much better feel about your broker once you have conversed and spoken with the Financial Professional about your exact needs and requirements. You should ensure that the Life Settlement Broker you have chosen will keep you updated on a regular basis and explain to you in detail about what any agreements, contracts and disclosures may mean for you.
4. The Brokers Buyer Network
   1. The number of offers and the amounts being offered for consideration for your Life Insurance Policy will depend solely on the quality and reach of the brokers potential buyers and the network that the broker has access to.

The Life Settlement Broker Process

The Life Settlement brokering process is not an easy one, there are many areas that a broker must manage to ensure a swift and fair outcome for what you are trying to achieve. The Brokering process is generally broken down into 5 key areas and sections.

These areas are listed as follows:

1. Pre-Qualification
2. Document Acqquisition
3. Potential Buyer submissions
4. Auctioneering Process Management
5. Sale Finalization and Execution