Financial advisors and life insurance agents are becoming more familiar with
life insurance settlements, and settlement brokers are working relentlessly
in soliciting these advisors through various forms of marketing. They often
pitch the concept of a hand’s free and cost free appraisal for your
settlement business. Although this sounds convenient, nothing is for free, so
what does it really cost?
Commissions in the life settlement market have been absurdly high. Brokers
can get away with charging 8% of the face amount of the policy. So, if the
purchase price of the contract was for 25% of the face amount of the policy,
the broker's commission could very well be 32% of the purchase price! With so
many life settlement brokers fighting for your business, what determines who
you are working with? Some common statements we hear from professionals using
a life insurance... (more)