Settlements Back From the Dead!

Life insurance agents are beginning to sell settlements once again with the reemergence of the life settlement market. The offers are down as well as the comp, but all in all the settlement market activity is up. Remember, before you buy or sell life settlements seek approval from your broker/dealer and/or confirm you state licensing requirements before you engage a prospect.
 
There are three branches of life settlements that agents can look at and get the appropriate licensing for:

1) Selling a life settlement investment product (either fractionals or raising money for a fund). --- Most states consider this a security and requires a Series 7. Some fractionals dispute this, but are having legal issues due to it. If you want to raise money - just get a 7 and not worry about it!

2) Brokering UL, Term, WL policies to life settlement provider - many states require agents to hold a life settlement brokers licences, even if you are using a life settlement broker. The state requirement follows the state that the policy is held in.

3) Brokering VUL policies to life settlement providers. This is considered a security and requires a Series 7 if you want to get paid a commission. If a life settlement broker tells you otherwise, you are violating SEC regulations and risk future penalties.

Okay I am in Texas looks as if you are as well but I don't believe Texas considers it a security. I am appointed with Life Partners but haven't really done much with them because I was being cautious. I do however think they are
a legit company despite some of the stuff they have gone through. Every big company gets sued and they did increase the average life expectancies.
 
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