In a life settlement contract, who is represented by the life settlement broker?

In a life settlement contract, the life settlement broker acts on behalf of the policyowners. This role involves assisting the policyowners in the sale of their life insurance policies to third parties, typically investors, in exchange for a lump sum payment that exceeds the cash surrender value but is less than the death benefit. The broker's primary responsibility is to ensure the policyowner's interests are prioritized throughout the transaction.

The broker assists the policyowners in understanding the terms of the settlement, evaluating offers, and navigating the complexities of the transaction process. By representing the policyowners, the broker advocates for the best possible financial outcome for them. This is particularly important because the life settlement process can be complex, involving legalities and financial implications that the policyowners may not fully understand without guidance.

It's important to note that while the beneficiaries and the insured individuals may have an interest in the policy, they do not have the same representation in the context of a life settlement as the policyowners do. The insurance company is not represented by the broker in this scenario, as their role is separate from the transaction involving the policyowner and potential buyers.