A life settlement broker is a licensed individual or entity who helps life insurance policyholders to sell their life insurance policy. The main reason why policyholders hire them is to sell their policy at a value more than the cash surrender value but less than the death benefits. Just as one needs an attorney in a court of law, so too does a policyholder requires the service of life settlement broker in the life settlement marketplace.
As at today, only a few life settlement brokers are trustworthy. Many of them are only concerned about their commissions. And they are very proficient in using deceptive tactics to persuade policy owners to sell their life insurance plan at ridiculous prices. To avoid picking the wrong life settlement broker, here is a list of criteria you should consider.
Are they licensed?
Each state has its own life settlement regulations. So, make sure that your life settlement broker has a license in the state where your life insurance policy will be sold. Also, make sure the life settlement broker is a member of Life Insurance Settlement Association (LISA).
How reputable is the life settlement broker?
The reputation of life settlement broker matters a lot when you want to cherry pick your preferred life settlement broker. This includes how long they’ve been in business and how many life insurance service providers they are working with. You can confirm the reputation by checking their reviews online or by asking previous customers how professional the life settlement broker is.
Do they have an anti-fraud policy?
Make sure they have a policy that will keep your personal health information strictly confidential.
What is the commission schedule?
This is the most important criteria which you should focus on. Be cautious of life settlement agent who does not have transparent commission schedule.