Life Settlement Companies

Looking for the best companies that buy life insurance policies? There are different types of life settlement companies you should be aware of if you’re considering selling your policy. Let’s explore these types and compare the list to help you find the best life insurance settlement company for you.

Since we already covered the basics of life settlements, we won’t redefine it but feel free to go back if you’re interested.

There are two types of life settlement companies and each plays an important role in a life settlement transaction. They are called life settlement providers & life settlement brokers. Let’s review each with a list of list of the top settlement companies.

Life settlement providers are specialty companies that are licensed to buy life insurance policies from senior citizens over 65 years old who decide to sell them. Providers represent the secondary life insurance market similar to how Fannie Mae represents the secondary real estate market. Providers are the companies who purchase the life insurance policies, unlike brokers who facilitate the transactions much like a real estate agent sells a home. Life settlement providers typically make one offer to a seller. If the seller accepts the one offer, the provider becomes the new beneficiary (the previous beneficiaries are removed) and collects the death benefit upon the insured passing. Providers take the risk by paying all future premiums and as they are for-businesses, their goal is to maximize their earnings and thus buy a policy as low as possible. Sellers can be at a disadvantage working directly with a life settlement provider because the buyer has no fiduciary duty to the consumer’s best interest. The consumer has no idea if they are receiving fair market value for their life insurance policy. That’s where a life settlement broker ensures the policy seller is getting a fair value for the sale of their policy. We will list the top life settlement providers below but first, let’s highlight the role of a broker.

Life settlement brokers are licensed life settlement companies or individuals who legally represent the seller of a life insurance policy in a life settlement transaction. As mentioned, settlement brokers are like real estate agents but instead of selling homes, they help you sell your life insurance policy for the highest possible amount. They maximize the payouts by auctioning the policy among the top life settlement providers to achieve the highest sales price. Unlike providers, brokers make commissions only when a policy is sold (if the seller accepts an offer). A good life settlement brokers earn their weight in gold. They ensure their clients are saving time by streamlining the process and negotiating the highest price that exceeds their client’s expectations.