THE TRANSACTION PROCESS
Sources for Policy Purchases
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The case management department identifies a potential policy for purchase using a nationwide network of brokers that interface with insurance agents and other professionals (such as financial planners, attorneys and stock brokers), providing a variety of services to seniors as detailed below:
- Settlement Brokers — Qualified settlement brokers throughout the United States act as policy owner representatives in the sale of policies through life settlements. These settlement brokers have access to a broad network of agents and financial advisers who refer potential life settlement clients.
- Life Insurance Agents — Life insurance agents may access their client database for clients who have purchased life insurance policies over the years. Life insurance agents can assess which of their clients may benefit for a life settlement based on criteria that may include the need for immediate cash or change in insurance coverage requirements.
- Stock brokers — One of the newer sources of policies is from the broker/dealer network. These brokers hold various licenses, including insurance and NASD Series 6, Series 7 or Series 63 (stockbrokerage and investment licenses). Many broker/dealer organizations are now encouraging their brokers to become familiar with this potential financial tool in order to offer effective estate and retirement planning advice to their clients.
- Accountants and Financial Planners — Accountants and financial planners acquire detailed information on their clients' personal financial needs and can identify who would benefit from a life settlement transaction. Considering all available financial tools and products is their fiduciary responsibility to the client.
- Attorneys — Attorneys provide estate planning services to their clients, and life settlements are frequently considered in offering the best possible estate planning solutions. Through this network of contacts, many life settlement opportunities are discovered.