A life settlement policy, as you must be aware of, is a financial transaction in which a policy owner possesses an unneeded or unwanted life insurance policy. He further sells the policy to a third party for more than the cash value offered by the life insurance company. The person responsible for making the deal crack is a life settlement broker. Moreover, he is the one who guides the policy holder in making the deal possible.
Life settlement broker is in fact, the biggest support for getting oneself insured for the whole life. A broker is able to assist the policyholder with the best options available like marketing, educational and evaluation materials on the life settlement products. However, each life settlement case is looked and weighed differently and also has various factors that make a person eligible for it. The factors responsible for making the person to clinch the deal are age and health of an insured person. Moreover, the amount of the loan is also determined according to the policy size, premium amount, current cash value of the policy, and here the role of life settlement broker comes into play. With his help, things can become easier. Hence, one can rely on a broker, as he is capable of doing things while taking care of the confidential things related to the policy. However, broker will procure some evaluation forms that will determine that whether you are eligible for the loan or not.
Life settlement broker must be licensed in the state where the policy owner resides. Moreover, several American states have regulations regarding the sale of life insurance policies to third parties. The financial advisors, who choose not to submit cases directly to a settlement provider, may opt to work through a life settlement broker. The brokers are intermediaries who bring together policy owners and providers together. For your information, the brokers, in exchange for a fee, offers policy to multiple seekers, just like a real estate broker solicits multiple offers for one’s house. While it is the broker who collects bids, whereas the advisor helps the client evaluate the upcoming offers against price, stability of funding, privacy provisions and commissions. Though, the compensation arrangements can vary and should be fully disclosed to the policy holder.
Settlement scheme, being a new concept, is not understood clearly by policyholders, hence, it advisable to opt for a broker who is able to offer accurate information on the product. Many a times, people are not aware of the fact that there could be a cash settlement available for a life insurance policy that they are surrendering or is going to lapse. A life settlement broker can thus create added financial benefits for you and the financial professional.
The broker will utilize all possible tools effectively. However, the broker should be knowledgeable with clear concept so that he can answer your doubts and queries without making you hassled or getting hassled. In fact, it will be advisable to check the credentials of a life settlement broker, as your policy is in his hands that you are exchanging in lieu of better life.