As the life settlement industry grows at an accelerating pace, an increasing number of life insurance producers are opting to transact directly with life settlement providers -- companies that actively purchase life insurance policies in the secondary market.While executing life settlement transactions through a specialized life settlement broker is beneficial for life insurance producers who do not have the know-how, resources or desire to transact directly with life settlement providers, producers who do elect to work directly with life settlement providers may benefit from the significant opportunity to execute more efficient transactions, while raising the level of the total policy sale consideration for their clients.
In working directly with providers, producers can earn higher commissions compared to what they would be earning by working through a life settlements broker. These commissions, typically a percentage of the policy purchase price, are determined as part of the overall life settlement negotiation.
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