Choosing a Life Settlement Representative: A Senior's Guide

The two primary categories are brokers and buyers (also called providers), and the distinction matters significantly for your financial outcome.

• A life settlement broker is a licensed professional who represents YOU, the policyholder, with a legal fiduciary obligation to act in your best interest.
• A buyer or provider represents the institutional investor purchasing your policy — their goal is to acquire it at the lowest possible price.
• Brokers run a competitive auction among multiple buyers to generate simultaneous offers, typically producing higher payouts.
• Brokers are compensated through commissions of ~10% from the sale proceeds — not from your pocket upfront.

1. 1
   Check state licensing: Contact your state's insurance department to confirm the representative holds a valid life settlement broker license.
2. 2
   Use FINRA BrokerCheck: If the representative is also a registered financial advisor, verify credentials and review disciplinary history.
3. 3
   Confirm LISA membership: The Life Insurance Settlement Association (LISA) enforces a strict annual code of ethics — membership is a meaningful quality marker.
4. 4
   Request fee and commission disclosures: A trustworthy broker provides clear, written disclosure of their commission structure before you sign anything.
5. 5
   Review professional reputation: Search through the Better Business Bureau and independent platforms. Look for patterns in complaints, not just isolated negative reviews.
6. 6
   Confirm fiduciary status in writing: Ask directly whether they are legally obligated to act in your best interest. A genuine fiduciary will confirm without hesitation.

• How many life settlement transactions have you completed, and how long have you been in this business?
• How many buyers will you approach with my policy?
• What is your exact commission rate, and are there any additional fees?
• How do you protect my personal and medical information?
• What is the typical timeline from application to receiving funds?
• Can you share case studies or examples of outcomes for clients with similar policies?

• Unsolicited contact: Legitimate representatives do not typically cold-call seniors with life settlement offers.
• Guaranteed high payouts: No honest representative can guarantee a specific amount before reviewing your policy and running a market assessment.
• Pressure to decide quickly: Any representative who creates artificial urgency or discourages a second opinion is not operating in your interest.
• Upfront fee requests: Reputable brokers are compensated from sale proceeds — you should never pay anything out of pocket to start.
• Unlicensed operations: Always verify licensing through your state insurance department before sharing any personal information.

For more detail on how brokers compare to direct buyers, read our Broker vs. Direct Buyer Advisor Guide.