How to Choose a Life Settlement Broker: Seniors & Advisors 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, in the sale of your policy.
• A buyer or provider purchases policies for its own portfolio, so its interests differ from the seller's.
• Brokers present your policy to multiple buyers so that more than one market participant can evaluate it.
• Broker compensation is determined case by case, considering the circumstances and economics of each transaction, and is always disclosed before the transaction is finalized. Compensation is structured to support successful transactions while staying transparent with the appropriate parties. Applicable compensation and transaction costs are disclosed in accordance with governing state laws and transaction documentation.

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 compensation disclosures: A trustworthy broker provides clear, written disclosure of how they are compensated before the transaction is finalized. Ask for it in writing.
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
   Ask about their role in writing: Ask directly whether they act as your broker or as a buyer, and how they handle conflicts of interest. A reputable broker will answer without hesitation.

• How long have you been in this business, and how many life settlement transactions have you handled?
• How many buyers will you approach with my policy?
• How are you compensated, and when will I see that in writing?
• How do you protect my personal and medical information?
• What is the process from application to receiving funds, and what affects the timeline? (No fixed completion date is guaranteed.)
• 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.
• Pressure to decide quickly: Any representative who creates artificial urgency or discourages a second opinion is not operating in your interest.
• Upfront fee requests: Be cautious of any request to pay out of pocket before a transaction. Ask for compensation to be disclosed in writing.
• 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 life settlement broker vs provider guide, and see life settlement broker fees and compensation. You can also compare companies side by side in our life settlement company comparison, or request a life insurance policy review.