Questions To Ask Your Life Settlement Broker

You didn’t come to the decision to sell your life insurance policy in the life settlement market lightly – you weighed the options, hopefully talked with an advisor on the pros and cons of the move, and chose the right brokerage firm to facilitate the sale. Or did you choose the right broker?

Probably the most difficult variable in the life settlement deal for policy sellers is knowing which broker to choose. Policy holders have some valid concerns. Not all broker firms are reputable or even unbiased.
When choosing a firm to represent your life settlement sale, ask the following questions:

1. Who is the buyer? What you’re looking for is a broker who is not also a buyer of life settlements. Such brokers pose a conflict of interest, and it could be that the interests that broker is serving are not yours.
2. Is the broker licensed in your state? Most states now have some form of regulation with respect to life settlements. The broker must be registered in each state they are doing business in.
3. What is the fee and how are broker commissions calculated? The best answer your broker can give you is that commission fees are based on a “value created” method. That means you’re paying a percentage based on the additional amount the broker secured on the sale of the policy, typically 30 percent, over and above the surrender value.
4. What is the typical application process like? Look for a broker who exercises adherence to regulations whether required to or not. Is there analysis of your medical history by a qualified medical professional?
5. Will you get to view the various offers? Transparency is key. If your broker is unwilling or says he’s unable to share bids with you, look elsewhere.
6. How many years of experience does the broker have? Look for someone whose specialty is life settlements and who has a client history of handling life settlements.
7. How does the broker plan to market your policy? Be exact in what you expect out of the sale. If you’re unsure what dollar amount to aim for, do some preliminary research ahead of time or talk with a financial advisor for some guidance.
8. Does the broker follow NAIC guidelines? The National Association of Insurance Commissioners have developed the standard guidelines for the insurance industry. Your broker should not only understand them, but adhere to them.
9. How is your privacy protected? Most life settlement brokers go to great lengths to ensure your private information never reaches the buyer of your policy. Find out what steps your broker takes to protect your personal information.
10. Does the broker firm carry errors & omissions coverage? Mistakes happen. A broker firm that carries appropriate levels of errors & omissions coverage is demonstrating a commitment to protecting their clients’ interests. Plus most insurance companies have strict minimum requirements brokers must meet in order to qualify for coverage.

If you have questions about how to interview your life settlement broker, Opulen Capital can give you a free consultation pointing out the requirements you should expect from your broker. Call us at 877-678-5631, or find out more at http://www.OpulenCapital.com.