What is the primary function of a life settlement broker?

The primary function of a life settlement broker is to negotiate sales of life insurance policies for policyholders. Life settlement brokers act as intermediaries between policyholders who wish to sell their life insurance and potential buyers, typically investors or companies that purchase these policies for their cash value or death benefit.

When a policyholder decides that they no longer need or can afford their life insurance policy, they may seek to sell it for a lump sum cash payment that is often more than the cash surrender value but less than the death benefit. The broker facilitates this process by evaluating the policy's worth, understanding the market, and negotiating terms that benefit the seller, ensuring that they receive a fair offer. The broker's expertise is crucial in determining the best possible value for the policyholder in the transaction.

The other options, while related to the insurance industry, do not accurately reflect the specific role of a life settlement broker. Selling life insurance policies refers to agents, while managing investments pertains to investment advisors or financial planners, and providing insurance advice falls within the purview of insurance agents or consultants who guide clients in selecting policies rather than negotiating sales transactions.