A life settlement provider is the actual purchaser of a life insurance policy in a life settlement transaction.
A life settlement is a transaction where the owner of a life insurance policy sells the policy to a third party for more than what the insurance company that is providing the insurance is willing to pay him or her for the policy.
It is estimated that over half of the policies insuring lives of people over the age of 70 have a fair market value greater than the policy’s cash surrender value.
It is the life settlement provider that actually writes the check for the purchase of the policy.
Life settlement brokers act as intermediaries between the policy owner and the life settlement provider. The brokers act as middlemen and are compensated for their activities.
It is incumbent upon the financial advisor to determine if the client, policy owner benefits most by working directly with a provider that can provide a customized transaction for the client or is the client better served by a middleman brokering “the deal” to several life settlement providers.
Suffice it to say, each transaction is different and there is no quick and easy answer.
A financial advisor experienced with life settlements should be able to help with this decision. Click the LIVEpdq link to be connected with an experienced financial advisor.