Who is licensed to negotiate a life settlement contract?

The life settlement broker is specifically licensed and trained to negotiate life settlement contracts. These professionals play a crucial role in the life settlement process, acting as intermediaries between policyholders who wish to sell their life insurance policies and potential buyers, such as investors or companies that purchase these policies.

A life settlement involves selling a life insurance policy for a lump sum that is less than its death benefit but more than its cash surrender value. The broker's responsibilities include assessing the value of the policy, guiding the policyholder through the selling process, and ensuring compliance with relevant state regulations.

While insurance agents and financial advisors may have knowledge about life insurance and financial products, they are not licensed specifically for negotiating life settlement contracts unless they hold a life settlement broker license. The policyholder, meanwhile, is the individual who owns the insurance policy and may initiate the sale, but they require a licensed broker to handle the negotiations effectively. Thus, the role of the life settlement broker is essential in facilitating these transactions in a legitimate and compliant manner.