A guide for policy owners
Life Settlement Broker:
What We Do for You
A life settlement broker represents the policy owner selling a life insurance policy. The broker shops your policy competitively to help maximize your offer, explains the fees, and guides you through the sale.
Start with a few questions about the policy.
Who does a life settlement broker represent?
A life settlement broker represents the policy owner who is selling. The owner and the person insured are not always the same: a spouse, trust or business may own the policy. The broker's responsibility is to the seller, rather than the company buying it.
At Citizens Life Group, your broker represents you as a fiduciary. That means acting in your best interest and following your instructions. Your broker works to maximize your offer through competitive bidding. You decide whether to accept it.
From policy review to a decision
What your broker handles
-
Prepare the policy for review
Your broker reviews the coverage, premiums and policy details, then coordinates the records buyers need. An in-force illustration, a projection from your insurance company, helps show the cost of keeping the policy active.
Your part: Share the policy information and authorize the necessary records. Your broker can help request the illustration.
-
Work to maximize your offer
The broker organizes a file for potential buyers and manages their questions. Each buyer makes its own assessment and may request more information. You have one point of contact for that work.
Your part: Provide any additional information needed while your broker negotiates with buyers.
-
Explain the terms and help complete the sale
Your broker explains the offers, fees and terms. If you accept an offer, the broker coordinates with the buyer on the documents, transfer and payment process.
Your part: Decide whether to sell. You can decline the offers and keep the policy.
For the documents and full sequence, see how to sell a life insurance policy.
How life settlement brokers are paid
When you work with Citizens Life Group, there is no upfront cost. The broker commission is paid from the settlement proceeds at closing, and every fee and commission is disclosed in writing before you sign. If you decide not to sell, you pay nothing.
Your broker shops your policy competitively to help maximize the amount you take home. The amount you receive after fees and costs is called your net proceeds.
Citizens Life Group · Life settlement broker guide
Keep this for your conversation
Choosing a broker you can verify
Start with the name of the brokerage and the professional handling your policy. Confirm their authority with your state's insurance department, and ask about any available disciplinary record. Check that the names and roles match your documents.
In Florida, use the DFS Licensee Search to search by the professional's full name. Confirm the life-agent license and viatical settlement broker appointment. The license label and requirements differ by state; ask the regulator if a record is unclear. Our state guides explain where to start.
Questions to ask before you choose
Keep these questions beside you when you call. Check them off as you cover them, and write down the answers so you can compare the service as well as the offer.
-
Get the name of the brokerage and the person responsible for your case, including any affiliated broker involved.
-
Ask how your policy will reach multiple buyers and how the broker will manage bidding and negotiations.
-
Have your broker explain the fees and the amount you would receive after all costs.
-
Find out who receives your policy and health records and what you are authorizing before signing a release.
-
Ask what each document permits, whether it includes exclusivity, and when you will be asked to decide on an offer.
-
Discuss whether keeping the coverage, changing the policy or using an available policy benefit would meet your needs.
These questions reflect the practical concerns in FINRA's life settlement guidance. For named companies, see our guide to life settlement companies.
Should you use a broker or sell directly?
A broker represents you, the seller, and works to maximize your offer through competitive bidding. A life settlement provider purchases policies. You can approach providers yourself, including more than one, and compare their offers.
With a broker, one application puts your policy in front of multiple buyers. Your broker handles the submissions and follow-up questions. Going directly to buyers means completing a separate application for each company.
The decision comes down to the work you want help with, the terms and the amount you would keep. A brokered sale does not guarantee a better result in every case.
Working with Citizens Life Group
Citizens Life Group is a licensed life settlement brokerage that represents you, the seller, and shops your policy competitively to maximize your offer.
Start with the policy type, its coverage amount and basic information about the insured. A broker reviews the details and follows up about whether the policy may qualify and what is needed next. You can involve a family member in that conversation.
Citizens Life Group and its affiliated brokers are licensed in the states where they operate. Contact us to confirm licensing and availability in your state.
Our Managing Director, Jeff Hallman, is a Florida licensed life agent (line 0214) and appointed viatical settlement broker (line 0266).
A few more questions
Can I use a broker if I already have an offer?
A broker can review an existing offer and use competitive bidding to help maximize what buyers are willing to pay. Share any agreement you have already signed, since its terms may affect your next step. See our life settlement second-opinion service.
Can my adult child help me speak with a broker?
Yes. A family member can help gather information and join a conversation with your permission. Who can sign depends on policy ownership and legal authority. Our power of attorney guide explains the questions to discuss with an attorney.
What if selling my policy is not suitable?
You may need to keep the coverage or consider another policy option. Ask your insurance company about available benefits or changes before giving up the policy. Compare selling, surrendering and borrowing against a policy.
Talk through your policy
Share a few details to start a policy review, or call us with your questions.
Mon to Fri 9am to 8pm · Sat to Sun 10am to 8pm Eastern
Sources and further reading
- U.S. GAO: Life Insurance Settlements (2010): review of state laws, including brokers' fiduciary duties.
- NAIC Viatical Settlements Model Act (PDF): section 2(M), the broker's role; section 3, licensing.
- FINRA: What You Should Know About Life Settlements: costs, privacy and questions for sellers.
Selling changes your life insurance coverage and may affect taxes or eligibility for certain benefits. Citizens Life Group does not provide tax or legal advice. We recommend consulting a tax professional and an attorney about your circumstances. Offers depend on the policy and the buyer's review; individual results vary.