Financial advisors and life insurance agents are becoming more familiar with life insurance settlements, and settlement brokers are working relentlessly in soliciting these advisors through various forms of marketing. They often pitch the concept of a hand’s free and cost free appraisal for your settlement business. Although this sounds convenient, nothing is for free, so what does it really cost?

Commissions in the life settlement market have been absurdly high. Brokers can get away with charging 8% of the face amount of the policy. So, if the purchase price of the contract was for 25% of the face amount of the policy, the broker's commission could very well be 32% of the purchase price! With so many life settlement brokers fighting for your business, what determines who you are working with? Some common statements we hear from professionals using a life insurance settlement broker are:

My broker says, “They shop the entire life settlement marketplace.” This is not a difficult task. In fact, an average case typically has less than 15 Providers can that could even consider it.

My broker says, “They have unique funding relationships that others don't have access to.“ This is a myth and a very common pitch used by brokers. Life insurance settlements are becoming more regulated. Off the beat funders, hedge funds or other smaller cap funds that are not licensed and not using licensed providers should be avoided. If you are life insurance licensed, most state regulations will allow you to handle your own life settlement transactions and will gladly give you the list of the licensed life settlement providers in your state.

My broker says, “They say they have special relationships based on the volume of business.” They may be on a first name bases with each of the life settlement providers out there, but do you really think an investor will over pay for something because they know your name? Absolutely Not! Just like in any free market, competition and quality of the product will determine its price.

My broker says, “They say they know how to manage underwriting to maximize your case value.” Most life insurance agents know exactly how to order APS’s and in-force illustrations, the only extra step in a life settlement transaction is obtaining a couple life expectancy certificates. This is a task that anyone can perform.

My broker says, “They say they fully disclose and will rebate me on the commissions” Commissions are determined by the broker themselves and are only limited to the Life Settlement Provider’s max compensation schedule or state regulation if applicable. So how is it possible to rebate on commissions that are “…to be determined”?

It’s Time for You to Go Direct!

In today’s life insurance settlement market bypassing a broker to work directly with providers is an available and viable option. Life settlement funders and providers prefer to work with knowledgeable agents and financial professionals who are working directly with policy owners. This display of control and direct access to the decision maker without multiple layers promotes transaction efficiency and can ultimately help speed up the bidding process.

A new service offered by www.lifepolicytrader.com was designed for licensed professionals to engage directly in the life settlement marketplace without having to research the entire market. This is a non-brokerage based file transfer service, designed like a case search engine to find the most qualified purchasers for your life settlement business. It’s a simple and effective way to instantly access the life settlement marketplace. Features such as tracking and reporting will help you navigate through a life settlement transaction with confidence.

Here are some of the benefits when using Life Policy Trader.

• Case Submissions are Branded for Your Company, Not Ours

• 256k bit Encrypted Security on Each Case Submission

• Access to 35+ Qualified Life Settlement Providers

• Easy to Use Step-by-Step Submission Process

• View Report of Who Downloaded Your Case for Evaluation

• Generate a Client Report

• No Additional Fee’s for Closed Business

• Partner Network for Underwriting Assistance

• Live Support from a Life Settlement Specialists

Life Policy Trader is the only true do-it-yourself customizable life settlement solution for those who want full control. For those are already engaged in the life settlement market and those looking to, this service will help you achieve your goals. Do not hesitate and call us now at (888) 342-1578 extension 101. and Start Earning More Today! www.lifepolicytrader.com

Written by: Brian Draina, President of Life Policy Trader, Inc 401 E. Las Olas Blvd. Suite 1400 Ft Lauderdale FL, 33301 Main (888)342-1578 ext 101 Fax (240) 536-0204 Cell (954)599-3964