What is the role of a life settlement broker?

The role of a life settlement broker is primarily to represent policyowners in life settlements. When a policyholder no longer needs or wants their life insurance policy, a life settlement broker facilitates the sale of that policy to a third party. The broker works on behalf of the policyowner to find buyers and negotiate the best possible price for the policy, ensuring that the policyowner receives a fair market value.

The broker acts as an intermediary, navigating the legal and financial aspects of the transaction and providing support throughout the process. This includes gathering necessary information about the policy and the policyowner’s health status to present to potential buyers. By focusing on the interests of the policyowner, the broker plays a crucial role in helping them maximize the value of their life insurance asset.

This role is distinct and separate from other responsibilities like negotiating directly with insurance companies, valuing policies for insurers, or assisting beneficiaries with claims, which do not align with the specific functions of a life settlement broker.