Choosing the right life settlement broker or company is important because Life Settlements can be а lengthy and соmрliсаted рrосess. For best results the seller needs an experienced team focused on the seller’s needs.
We have found a market-based auction business model that achieves the highest sales pay-out.
MАKE SURE THEY АRE LIСENSED
First and foremost, make sure the Life Settlement Broker and Life Settlement Provider are properly licensed in your state. The Life Settlement sales process is highly regulated by each state and the licensing component is the starting point to make sure everyone is following the state-mandated rules and regulations.
VERIFY YOUR TEAM’S INSURANCE COVERAGE
Depending on the state, there are minimum levels of insurance required to maintain a license. Although not required by all states, a professional liability policy will provide added protection to the seller.
The professional liability policy provides errors and omissions coverage to the seller if a mistake is made that damages the sales process.
Independent third-party escrow accounts are used to provide another layer of protection to the seller. During the final stages of the transaction, the purchase price is deposited in an independent third party escrow account (usually a national bank).
During the life settlement process, the seller will be given specific information about the fee structure. The fee structure is usually presented as a percentage of the sales amount and there are minimum and maximum caps to the fee structure depending on the size of the sale.
The sales fee structure: the amount of the fee and what parties receive the fees are all itemized in writing and signed off by the seller. Likewise, expenses associated with your file are all itemized in writing to the seller. Important note: the seller does not pay for any file expenses – those expenses are paid by the Life Settlement Provider and Broker.