The information you need in order to improve the experience of the life settlement process and increase the opportunities for entering into life settlement transactions.
What to look for when selling a policy:
As a broker/agent, you have several important issues to take in to consideration when determining what is best for you and your client:
- Which state law will apply for the life settlement?
- Is the broker/provider licensed in the states I plan on engaging in the transaction?
- Are the broker’s/provider’s goals in line with that of my client(s)?
- What is the source of funds of the ultimate buyer of my client’s policy?
- Do the broker/provider policies and procedures ensure that my client’s identity is safe?
Broker vs. Provider:
You have a choice of working through a life settlement broker or going directly to a life settlement provider:
- Agents just entering the market may want to work through a broker at first as it entails less work on the producer’s end. This allows the agent to learn about the industry and how it works.
- Going straight to a provider can result in better execution and lower commissions, as one less intermediary is involved in the transaction. This can also increase the amount of cash received by your client since one less party will be paid a commission.
Options to consider when accepting an offer:
After you have decided to work with a broker or provider and gotten a number of bids you have to consider choosing the right one based on several questions:
- What is the provider’s reputation and past record for closing transactions?
- Where does the money come from? Is the money institutional?
- How quickly the provider can close the case?
- How transparent is the process?
- Is my client’s privacy going to be protected?
