It can be tempting for financial advisors and brokers to promise more than they can deliver on a life settlement transaction. After all, they stand to make money either way. Unfortunately, some advisors do the opposite of what should be done – they over-promise and under-deliver. This can lead to disappointment when offers are not as high as sellers were led to believe. Even worse, if your financial advisor is giving you skewed information about your life settlement, they may be giving you inaccurate information about other things. Always insist that your advisor or broker tells you the straight truth and ask them to show you any calculations or data that would support their prediction. Otherwise you might spend a lot of time and come out with little or nothing to show for it.
Choosing to Work with the Right Life Settlement Company
This is a big one. Life settlement brokers are crucial in selling a life settlement. They have the connections, the experience, and the know-how. You and your financial advisor don’t. That doesn’t mean you should choose just any broker to work with throughout the life settlement process. Some brokers are more ethical than others, some take higher commissions than others. Some brokers are simply better-connected and more capable than others.
When searching for a reliable broker, make sure to ask questions about their experience. Are they members of LISA, the national Life Insurance Settlement Association? Which states are they registered in? Have their licenses ever been revoked or suspended? Are they fully licensed, or are they working under borrowed licenses? The answers to these questions can tell you a lot about the broker and can separate the wheat from the chaff.
As with any large financial engagement, you should give your life settlement process the attention and treat it with the seriousness it deserves. Be wary of advisors or brokers who promise you the moon – if it sounds too good to be true, it probably is. Wait until you see offers in writing and scrutinize those offers carefully. Don’t ignore your obligations towards a policy just because you’ve decided to sell it – keep your premium payments current. Choose the broker you work with carefully – their expertise and attitude will determine whether you get a good deal, a bad one, or neither. Finally, pay attention – as always – to the fine print and the details of every engagement within the whole life settlement process – from the license of your broker, the commission they take, to the contractual details of any offer. Get everything in writing. This will ensure that you go through the process with as much information and safety as possible. Good luck!