Do I Need A Life Settlement Broker When I Sell My Life Insurance?
A life settlement broker operates as an intermediary between the seller and buyer of a life insurance policy called a life settlement. Ideally, a life settlement broker will be protecting the interests of the life insurance policy seller/owner, whereas the buyer will be interested in the life settlement as an investment. A life settlement broker will take a percentage from the offer given to the seller.
Do I Need to Use a Life Settlement Broker?
You don’t have to use a life settlement broker. In fact, you can go directly to a provider if you desire. A provider will likely typically complete the transaction faster than going through a broker, but you won’t have anyone protecting your interest. If you feel comfortable negotiating the sale independently with a life settlement provider it is within your right to do so.
How Does a Life Settlement Broker Get Paid?
A broker is like a realtor. The broker will be paid a percentage of the life settlement as their fee. Different brokers may charge different rates, and these rates should be disclosed at the beginning of the process. The broker does not need to be paid before the deal has been brokered and will not be paid if the deal isn’t completed.
Does a Life Settlement Broker Have to be Licensed?
A life settlement broker is generally licensed through the state, though there are some states that don’t require licensing. The licensing process includes ethics and legal knowledge.
How Do I Know I Can Trust My Life Settlement Broker?
A broker does not get paid unless a deal is reached. Moreover, the intent of a broker is to make sure that you get the most out of your life settlement funds, because their pay is generally based on the amount that is paid out. Licensure further ensures that your broker will act ethically and in your best interests. Licensed life settlement brokers have a fiduciary duty to the seller.
Do you want to sell your life insurance for cash to a life settlement business? Are you interested in getting in contact with a life settlement provider or do you need funds now to pay for immediate expenses, such as to pay for memory care? If so, you may want to contact a life settlement brokerage to discuss your options.