Did you know you can sell all or a portion of a life insurance policy, even term insurance?
(4 minute read)
Considering a career transition? Looking to help people with their financial situation in their later years in life? If so, it might be time to consider becoming a life settlement broker. “What is a life settlement broker?” They are the individual who represents the owner of a life insurance policy, as that owner tries to sell their policy for cash, i.e. a life settlement. Life settlements are a great way to sell off parts of, or even entire, life insurance policies for an immediate return of cash.
In this blog, we are going to look at some of the basics of working as a life settlement broker, like salary, nature of the work, and how to become one.
Who Does A Life Settlement Broker Represent?
Similar to selling a car or a house, a life settlement is a transaction between two parties, a buyer and a seller. While providers tend to represent the buyers, a life settlement broker is a licensed fiduciary who represents the policy owner, i.e. the seller. The broker is there to ensure the best outcomes and decisions are being made on behalf of the client—the current policyholder.
A broker provides support to the client through the underwriting, contract writing, and negotiating process. A huge role of the broker is to conduct due diligence when selecting a buyer. In return for working in the client’s best interest, the broker will be paid a fee or a commission as part of the transaction. This means that, as their client wins, so too does the broker.
Life Settlement Broker Salary
Since life settlement brokers earn a large portion of their money through brokerage fees and transactions, there is a wide salary range within the profession. According to ZipRectuiter, the average salary is around $65,000 per year. For reference, that is about $31 per hour or $5300 per month, pre-tax.
However, top earners can make over six figures, and even the 75th percentile are bringing home upwards of $75,000 annually, or $6000 per month. The highest salaries for brokers typically fall somewhere around the $145,000 mark. For the highest paying markets, look to the west coast. Six of the top ten highest paying cities for life settlement brokers are located in California, with the other four spread all over the rest of the country.
How to Become A Life Settlement Broker
If becoming a life settlement broker sounds interesting to you, there are a few steps to go through. While license requirements vary from state to state, there are some that apply everywhere. First and foremost, you must be at least 18 years of age to acquire a license. You will also need some experience as an insurance producer. After those boxes are checked, you need to fill out the application. For example, Indiana’s can be found here. This application will ensure you are in good standing with the state, as well as collect some demographic and personal information. After your application is approved, the state will send further paperwork to complete.
Learn More with Life Settlement Advisors LLC.
Instead of just googling “life settlement advisor near me,” let us be your trusted resource on all things life settlement. We can help you with career development or questions, structuring a life settlement, or even selling your own life insurance policy. With more than 50 years of combined experience, we strive to offer sound advice to every client or advisor we meet. Our goal is to help educate you, so you feel empowered to make the best decisions. Reach out to us today to see how we can help you!
Did you know you can sell all or a portion of a life insurance policy, even term insurance? Selling an unwanted life insurance policy is no different than selling your car, home, or any other valuable asset that will create immediate cash. Contact us today to learn more.
Life Settlement Advisors