The Role of Life Settlement Brokers

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Life settlement brokers have traditionally played a crucial role in helping policyholders sell their life insurance policies. The role of life settlement brokers is to connect sellers with potential buyers, negotiate deals, and handle the necessary paperwork. However, their services come at a steep price, often taking 30% or more of the sale proceeds.

What Does a Life Settlement Broker Do?

A life settlement broker‘s main responsibility is to represent the policyholder’s interests in the sale of their life insurance policy. This includes:

1. Finding Buyers: Brokers use their network to solicit offers from potential buyers.
2. Negotiating Terms: They work to get the highest offer for the policyholder. 
3. Managing Paperwork: Brokers handle all the documentation required for the sale, ensuring compliance with legal and regulatory requirements.

Despite these services, the high commission fees charged by brokers—typically 30% or more of the total life settlement offer – can significantly reduce the net benefit for the policyholder. This has led many to question whether using a broker is worth the cost.  Is using a broker really necessary?

The Direct Model: A New Way to Sell Your Policy

In 2016, a new model emerged that fundamentally changed the life settlement industry. Reverse Life Insurance began offering a direct approach, allowing policyholders to sell their life insurance policies without the need for a broker. This model has several advantages:

1. Cost Savings: By cutting out the middleman, sellers can avoid paying exorbitant broker fees, keeping more of the sale proceeds for themselves.
2. Simplicity: Our direct platform simplifies the process by handling all the necessary tasks, including obtaining initial compliance forms, medical records, and insurance illustrations.  This is all done electronically, securely, and compliantly.
3. Transparency: Policyholders wishing to sell their policy are presented with a direct offer from a buyer, with no need to consider removing broker fees.  The offer presented to you is the amount you will receive. 

Is a Broker Still Necessary?

While brokers can provide valuable services, the direct model has proven that they are not always necessary. In fact, many policyholders find that using a direct platform is not only more cost-effective but also more straightforward. Here’s how the direct process works:

1. Preparation: The platform will gather your medical records, in-force illustrations, and verification of coverage from your life insurance carrier.
2. Receiving Offers: Once your information is prepared, the platform will present it to multiple licensed buyers. This competitive process often results in higher offers.
3. Closing the Sale: Once you accept an offer, the platform handles the final paperwork through a licensed provider in your state, ensuring a smooth and efficient transaction.

Why Consider Our Direct Platform?

The direct model offers several compelling reasons to consider bypassing a broker:

• No Broker Commissions: You retain the full offer for your policy without having to pay a broker’s commission.
• Quick and Easy: Our direct platform streamlines the process, making it faster and often less complicated than working through a broker.
• No Obligations: You can explore your options without any commitment, allowing you to make an informed decision without pressure.  In fact, we encourage everyone to have their policy appraised.  It is always wise to learn if your life insurance holds a hidden value. 

While life settlement brokers have traditionally been seen as necessary intermediaries in the sale of life insurance policies, the industry has evolved. The Reverse Life Insurance platform offers a viable alternative that can save you time, money, and hassle. By using a direct platform, you can take control of the process, avoid paying high broker fees, and maximize the value of your life insurance settlement.

If you’re considering selling your life insurance policy, explore the direct option first. With no broker fees, no obligations, and a transparent process, it’s a smart way to ensure you get the most out of your policy. Before you decide to lapse or cancel your policy, make sure to investigate whether there’s hidden value that could be lost. Give us a call at 800-727-7654 to learn if you are likely to qualify.