If you have started researching life settlements, you have probably noticed that this space is crowded, and the companies in it do not all do the same job. Some buy policies for their own portfolios. Some shop your policy to many buyers on your behalf. Some only collect your information and sell it to someone else.
That distinction is not a technicality. Who you work with directly determines how much money reaches you at closing.
One disclosure before we start: this guide is written by a Florida-licensed life settlement broker, and our own brokerage is one of the companies discussed below.
The Three Types of Life Settlement Companies
Almost every company in the life settlement market falls into one of three categories. Knowing which one you are talking to is the most useful thing you can learn before any conversation about your policy.
1. Life Settlement Buyers (Providers)
Providers are the institutional investors that actually purchase policies: hedge funds, pension funds, private equity firms, and specialized life settlement funds. A provider pays you a lump sum, takes over the premium payments, and collects the death benefit later. It is buying your policy as a financial asset for its own portfolio.
Because a provider represents its own money, it has every reason to buy your policy as cheaply as possible. When you deal with one provider directly, you see exactly one offer, theirs, with nothing to compare it against. Well-known direct buyers include Coventry, Magna Life Settlements, and Abacus Life Settlements.
2. Life Settlement Brokers
A broker represents you, the policy seller. In regulated states a licensed life settlement broker owes you a fiduciary duty, the highest legal standard of care, which means it is bound to act in your interest. A broker does not buy policies. Instead it takes your policy to many providers at once and runs a competitive bidding process to drive the offers up.
That competition is the entire point. When several institutional buyers know they are bidding against one another, the price moves in your favor. The broker’s commission comes out of the final settlement proceeds, so you pay nothing upfront and nothing out of pocket. For a step-by-step walkthrough, see our guide on how to sell your life insurance policy.
3. Lead Generators and Marketing Companies
These companies advertise life settlement services but neither buy policies nor broker the sale. They collect your contact information and policy details, then sell that data to buyers or brokers. A lead generator adds a layer between you and the real transaction. Your information may go to a single buyer with no competition, or it may be resold to several parties, which is why a single inquiry can turn into a flood of phone calls. Some lead generators are upfront about their role. Others present themselves as brokers or settlement companies when they are really just selling your information.
How We Evaluated the Companies on This Page
We did not assign star ratings or a numeric ranking, because no single company is best for every seller, and a self-published “we are number one” list deserves the skepticism it usually gets. Instead we sorted companies by the criteria that actually affect a senior’s outcome:
| Criterion | Why it matters |
|---|---|
| Whom the company represents | A company that represents you has a structural reason to maximize your payout. One that represents itself does not. |
| Licensing and fiduciary duty | Licensed brokers in regulated states are legally bound to act in your interest. This is verifiable, not a marketing claim. |
| Competitive bidding | Offers rise when multiple buyers compete. A company that shops your policy widely tends to beat a single take-it-or-leave-it offer. |
| Fee transparency | Commissions and costs should be disclosed in writing, in plain language, before you commit. |
| Cost to the seller | You should never pay anything upfront. Legitimate compensation comes from the settlement proceeds at closing. |
We applied these same five criteria to our own brokerage. Where we point out that brokers tend to produce higher offers than direct buyers, that is the documented economics of competitive bidding, supported by the industry data cited at the end of this article, not a claim unique to us. Whichever company you consider, verify its license and current standing with your state’s department of insurance before you proceed.
Notable Companies by Category (and What Each Is Best For)
The names below are examples, not endorsements, and the list is not exhaustive. Always confirm a company’s current license and standing with your state’s department of insurance before you share policy details.
Direct Buyers (Providers)
- Coventry. One of the largest and most recognized direct buyers in the market. Best for sellers who specifically want to deal with a single well-known institutional buyer and understand they will see only that buyer’s offer.
- Abacus Life Settlements. A publicly traded direct buyer that promotes an online valuation tool. Best for sellers who want brand familiarity and a self-serve starting estimate, while still recognizing it represents its own portfolio.
- Magna Life Settlements. An established direct buyer with a long market presence. Best for sellers comfortable with the direct-purchase model and its single-offer trade-off.
Brokers (Who Represent the Seller)
- Citizens Life Group. A licensed Florida life settlement brokerage that represents the seller and shops each policy competitively to a network of institutional buyers, at no upfront cost. Best for seniors and their families who want a licensed fiduciary broker running a competitive process on their behalf rather than negotiating against a single buyer alone. In states where it is not licensed, it works with fiduciary-affiliated brokers who also represent the seller.
- Asset Life Settlements. A life settlement broker that represents sellers and works closely with financial advisors, planners, and estate professionals. Best for advisors and their clients who want a settlement handled through a trusted financial professional.
- Life Insurance Settlements, Inc. One of the longer-operating brokers in the secondary market, founded in 1993 and based in Florida, representing sellers rather than buyers. Best for sellers who value a long industry track record.
Lead Generators and Marketing Companies
These are often the unbranded advertisements, mailers, and “find out what your policy is worth” forms that appear online and in your mailbox. They are best for almost no one as an endpoint, because they do not represent you and do not run the sale. If you start with one, find out quickly who actually receives your information and whether that party is a licensed broker working for you or a single buyer working for itself.
Side-by-Side Comparison
| Company / Type | Represents | Licensed and fiduciary to you? | Typical payout dynamic | Cost to you | Best for |
|---|---|---|---|---|---|
| Citizens Life Group (broker) | You, the seller | Yes, licensed FL brokerage; fiduciary in regulated states | Higher, via competitive bidding | None upfront; commission from proceeds | Seniors who want a fiduciary broker running a competitive process |
| Brokers generally (e.g., Asset Life Settlements, Life Insurance Settlements) | You, the seller | Yes in regulated states; verify by state | Higher, via competitive bidding | None upfront; commission from proceeds | Sellers who want representation and competition |
| Providers / buyers (e.g., Coventry, Abacus, Magna) | Themselves | No; they represent their own portfolio | Lower, single take-it-or-leave-it offer | None upfront; you net less at close | Sellers who want one named institutional buyer |
| Lead generators | Themselves | No | Variable, often lowest | None upfront; indirect cost downstream | Rarely the right endpoint |
Why the Type of Company Matters
The gap between a single direct-buyer offer and a broker-run competitive process can be large, and it comes down to one thing: competition.
Consider an illustrative example, a $500,000 universal life policy held by a 77-year-old.
- Direct buyer, single offer: might come in around $80,000.
- Fiduciary broker, competitive bidding: might secure roughly $130,000 to $160,000.
That is a potential difference of $50,000 to $80,000 on the same policy, driven only by who you chose to work with. These figures are illustrative, not a quote or a guarantee, because real offers depend on age, health, policy type, and the bidding itself. The principle, though, is consistent: a buyer that knows it is the only one at the table offers less, and a buyer that knows it is competing offers more.
The broader data points the same direction. According to the Life Insurance Settlement Association’s 2025 market study, sellers received an average of roughly $212,066 through life settlements in the prior year, close to nine times the average cash surrender value of about $24,360 for the same policies. The lesson for a senior is simple: the open market routinely values a policy far above what the insurer would pay to surrender it, which is exactly why shopping it competitively matters. For a deeper look at real numbers, see our guide to average life settlement payouts.
How to Evaluate a Life Settlement Company
Before you hand over any policy details, ask these five questions. The answers tell you almost everything you need to know.
”Are you a buyer or a broker?”
This is the single most important question. If the company buys policies, it represents its own interest. If it brokers policies, it should represent yours. You want a clear, direct answer, not a dodge.
”Are you licensed in my state, and how can I verify it?”
Life settlement brokers and providers must be licensed by state insurance departments. Ask for the license type and the state, then verify it yourself. As of 2026, 43 states regulate life settlements, and in those states operating without a license is illegal. Our state-by-state life settlement rules guide explains how regulation differs where you live.
”Do you owe me a fiduciary obligation?”
A fiduciary broker is legally required to act in your best interest, the highest standard of care. Not every party in this market operates at that level, and the difference is not cosmetic.
”How many buyers will see my policy?”
A real broker shops your policy to a network of institutional buyers. Ask for a number. If the answer is “one,” or the company gets vague, that is a signal you are not getting a competitive process.
”What are your fees, and how are you paid?”
Broker commissions commonly range from 15% to 30% of the gross settlement, with an industry norm around 22%. Many states cap the commission at the lower of 8% of face value or 30% of the settlement amount. Every fee should be disclosed in writing before you commit, and you should never be asked to pay anything upfront.
Red Flags to Watch For
- High-pressure tactics. A legitimate company never rushes you. Manufactured urgency is a reason to walk away, not to sign.
- Upfront fees. You should never pay out of pocket to explore a settlement. All costs come from the proceeds at closing.
- Vague answers about their role. If a company cannot clearly say whether it is a buyer, broker, or lead generator, assume the least favorable answer.
- No license information. If a company will not provide a verifiable license, do not share your information.
- Guaranteed dollar amounts. No one can promise what your policy will sell for before underwriting and bidding. Treat specific guarantees as a warning sign, and set expectations with our average payout guide.
- Out-of-the-blue contact. Unsolicited calls and mailers offering to buy your policy almost always come from buyers or lead generators, not from a broker working in your interest.
What About Online Reviews and Ratings?
Reviews can help, but read them in context.
- Better Business Bureau (BBB) ratings mostly reflect complaint handling, not the quality of the settlement you will receive.
- Google reviews from verified customers are usually the most grounded, especially when they describe the actual process.
- Industry associations such as the Life Insurance Settlement Association (LISA) maintain member directories and a code of ethics members attest to annually.
The most reliable signal is not a star count. It is transparency: a company that clearly states who it is, who it represents, how it is paid, and what happens at each step.
Where Citizens Life Group Fits
We kept ourselves out of the ranked discussion above on purpose, because the most useful thing we can do is help you choose well, even if that choice is another company. Here, plainly, is the role we play.
Citizens Life Group is a licensed life settlement brokerage in Orlando, Florida. We represent the seller, never the buyer. When you work with us, we take your policy to a network of institutional buyers and run a competitive bidding process, then bring you the strongest offer that process produces. Our commission comes out of the settlement at closing, so there is no upfront cost and nothing to pay out of pocket. If your policy does not qualify, we tell you, because a fiduciary broker has no reason to waste your time. In states where we are not licensed, we work with fiduciary-affiliated brokers who also represent you. Contact us to confirm licensing and availability where you live.
“A senior should never have to negotiate alone against an institutional buyer that does this every day. Our job is to put that buyer in competition with others and make them earn the policy. That is the difference between one offer and the best offer.”
Jeff Hallman, Managing Director, Citizens Life Group, a Florida-licensed life agent and appointed viatical settlement broker who has been part of more than $3 billion in closed life settlement transactions since 1999.
If you want to understand our approach in more depth, read about our brokerage or meet Jeff Hallman. When you are ready, start with a free estimate and we will give you an honest read on what your policy could be worth, or call us at (321) 270-0279. If you are not sure your policy even qualifies, check in a few minutes.
Frequently Asked Questions
What is the best type of life settlement company to work with?
For most sellers, a licensed life settlement broker is the strongest choice. A broker represents you rather than the buyer, owes you a fiduciary duty in regulated states, and runs a competitive bidding process across multiple institutional buyers. That competition is what tends to produce the highest offer. Direct buyers and lead generators do not shop your policy on your behalf.
What is the difference between a life settlement broker and a provider?
A provider (also called a buyer) purchases your policy for its own investment portfolio and represents its own financial interest, so it has no reason to pay more than it must. A broker never buys policies. A broker represents you, the seller, shops your policy to many providers at once, and is paid a commission from the final settlement proceeds. The broker model is built around competition; the provider model is not.
Is Citizens Life Group a life settlement broker?
Yes. Citizens Life Group is a licensed life settlement brokerage based in Orlando, Florida. It represents the seller, not the buyer, and shops each policy competitively to a network of institutional buyers. In states where it is not licensed, it works with fiduciary-affiliated brokers who also represent the seller. Citizens Life Group is not a buyer or provider and does not purchase policies.
How much do life settlement brokers charge?
A broker is paid a commission from the settlement proceeds at closing, so there is no upfront or out-of-pocket cost to you. Commissions commonly range from 15% to 30% of the gross settlement, with an industry norm around 22%. Many states cap the commission at the lower of 8% of face value or 30% of the settlement amount. Every fee should be disclosed in writing before you commit.
How do I verify that a life settlement company is licensed?
Ask for the company’s license type and the state it is licensed in, then confirm it directly with that state’s department of insurance. In Florida, you can verify a licensee by name through the Department of Financial Services. As of 2026, 43 states regulate life settlements, and operating without a required license in those states is illegal.
Sources
- Securities and Exchange Commission, Investor Bulletin on Life Settlements. SEC consumer guidance distinguishing licensed brokers (fiduciary to the seller) from direct buyers (representing their own interest), and flagging common red flags in direct-buyer marketing.
- NAIC Life Settlement Producer Licensing. State-by-state broker and provider licensing framework, and the path for verifying any company’s license status.
- Life Insurance Settlement Association Code of Ethics. Voluntary industry standard LISA members attest to annually, covering disclosure, fiduciary conduct, and anti-fraud requirements.
- FINRA Investor Alerts, Life Settlements. FINRA guidance on the secondary market for life insurance and the importance of working with licensed, regulated counterparties.
- Life Insurance Settlement Association 2025 Market Data Study. Industry data showing average life settlement payouts of roughly $212,066, close to nine times the average cash surrender value, and the documented advantage of competitive, broker-facilitated marketing.
- Florida Department of Financial Services Licensee Search. The public lookup for verifying a Florida life settlement broker’s license by name, shown as an example of the due-diligence path in any state.