If you’re looking to sell your life insurance policy, your goal is simple: get the highest payout possible while working with a reputable, licensed buyer. But the life settlement market can be confusing, and not all buyers offer the same price. Some brokers take hefty commissions and knowing how to find the best offer when selling your life insurance is essential, as the offers you receive can vary widely based on factors like your policy type, health status, and market demand.
So, how do you ensure that you’re getting the best deal? Let’s walk through the process, key considerations, and how to avoid common pitfalls.
Understanding Who Can Buy Your Policy
Who buys life insurance policies? Only Life Settlement Providers are licensed to buy life insurance policies, but they typically act as intermediaries, acquiring policies on behalf of institutional investors or selling them in the tertiary market. While they must adhere to fair market practices, they are not obligated to offer you the highest possible price.
The value of a life insurance policy is not fixed—different buyers will evaluate it differently. Factors like your health, policy details, and funding availability play a role in what an investor is willing to pay.
In most states, individuals and entities that are not licensed providers can legally purchase one or two policies per year. This has led to small groups and private buyers actively soliciting policyholders. However, it is preferable to work only with experienced and licensed life settlement companies.
Understanding Broker Fees and Commissions
A life settlements broker does not buy policies—their role is to represent you in the transaction by gathering your medical records, verifying your insurance details, and presenting your policy to potential buyers. In theory, a broker should increase competition for your policy, driving up the final sale price.
However, many brokers take commissions averaging 30% of the sale proceeds—a significant portion of your payout. Additionally, most brokers require you to sign an exclusivity agreement, locking you into working with them for a set period.
If you do choose to work with a broker, it’s important to negotiate their contract. You should explicitly state that you are obtaining a direct offer on our platform and ensure that any agreement allows you to pursue that offer independently. Some brokers may refuse to work with you if you disclose this, but securing an independent bid is your right.
How Our Platform Helps You Get the Best Offer
We provide a direct-to-buyer platform that allows you to have your policy presented to actual end buyers of life insurance policies.
Here’s how our platform works:
- We collect the necessary documents – Our secure and compliant system gathers your medical information, verification of coverage, and insurance illustrations required for policy valuation.
- You receive offers with no hidden fees – Our service platform is sponsored by direct buyers. You pay no broker commission, and you are under no obligation to accept an offer.
- If you accept your offer – All transactions are completed through a compliant process with a licensed life settlement provider.
Unlike working with a broker, when you receive a direct offer through our platform, you do not need to subtract any fees from your payout. The amount you see is what you receive.
Avoid These Common Mistakes When Selling Your Policy
Even if you receive an offer for your policy, you can lose money by making simple mistakes. Be sure to:
- Factor in broker fees – If using a broker, make sure you understand how much they will take so that you understand the amount that is net to you.
- Check BBB accreditation – Experience and complaint history matter.
- Verify the buyer’s credentials – Only work with experienced life settlement companies.
- Check state regulations – Laws vary by state, so be sure that your life settlement is being closed by a licensed provider in your state.
Who Will Pay You the Most for Your Life Insurance?
The best offer for your life insurance policy isn’t just about who offers the highest price—it’s about how much you actually receive after fees and commissions. By avoiding unnecessary broker commissions and working direct via our platform, you can maximize your offer.
Our platform simplifies the process, allowing you to sell your life insurance policy direct with no hidden costs. If you’d like to learn more or see if you qualify, please give us a call. It only takes a few minutes, and there’s no obligation to sell.
Contact us today at 800-973-8258 to explore your options. Every case is different and no question is too small. Please give us a call and we’ll try to help you as best we can.