Do Financial Advisors And Life Insurance Agents Need A Life Settlement Broker?

This is an interesting question. What the producer is really asking is if he is qualified to assume the role of both client advisor and life settlement broker. The intent here is to increase his compensation by assuming a larger and more responsible role in the transaction. To answer that question, a producer must not only understand the role of the life settlement broker in the settlement process, but the process itself and the multiple responsibilities assumed. The settlement broker represents the interests of the policy seller with the objective of obtaining the highest possible price for the policy he is authorized to sell.

How does a life settlement broker do that?

It is the life settlement broker’s responsibility to understand the life settlement marketplace. He needs to know the providers in the marketplace (who represent institutional sources of capital), have a working relationship with many of those providers, know which providers are likely to have an interest in the policy, what states the providers are licensed in, which life expectancy providers are authorized to submit life expectancy certifications to the source of capital (buyer), which LE providers he should buy certifications from (at $300 each), and which providers he can negotiate with to get the highest possible market price. In order for an insurance producer to begin to answer that question, he has to commit the necessary resources and time to developing his life settlement business.

Brokers assume all case management and administrative responsibilities. A life settlement can easily take 60-90 days or more until completed and involve everything from ensuring that life settlement applications are properly completed, medical records have been procured for underwriting, and all required documentation be distributed to the buyer’s representative. Upon the completion of underwriting and the preparing of bids, the broker/case manager negotiates with each provider to optimize the offer and submits the winning bid to the producer for client acceptance. When the offer is accepted, the broker facilitates the closing process acting as liaison between the buyer (new owner) and the insurance carrier to effect the change in policy ownership.

Can an insurance producer/client advisor accept the responsibility of broker and assume a dual role? The answer is yes. Can a producer commit both resources and time and perform the broker role as effectively and impartially as by outsourcing? Without years of experience and many life settlement cases under your belt - the answer is no. Without a serious commitment of time and resources the answer is no. The real question is: If you decide to assume both roles are you really acting in your client’s best interest or your best interest?

Located in Manhattan Beach, California, Opulen Capital is a specialized financial services firm focusing on products and services tailored for senior citizens. Opulen Capital is one of the leading firms offering Life Settlement opportunities for high net worth clientele. We leverage unrivaled experience and exclusive relationships in the life settlement marketplace to structure, obtain, and sell life insurance products to maximize cash profits for our valued clients. Opulen Capital’s mission is to continue to provide the best solutions for our clients through the highest level of integrity and service. For more information, visit our website at http://www.OpulenCapital.com or call Opulen at 877-OPULEN-1 (877-678-5361)