In a life settlement contract, whom does the life settlement broker represent?

A life settlement broker represents the owner of the life insurance policy in a life settlement contract. This means their primary responsibility is to act in the best interest of the policyholder, who is typically looking to sell their policy for a value that exceeds its cash surrender value. The broker facilitates the transaction by connecting the owner with potential investors interested in purchasing the policy. This relationship is crucial because it supports the owner's decision-making process throughout the transaction, ensuring they receive competitive offers and are informed about their options.

In contrast, the other parties involved, such as the insurer and the investor, have different roles that do not involve representing the interests of the policy owner. The insurer is primarily focused on administering the policy and managing claim payments, while the investor seeks to profit from the investment in the life insurance policy. The state regulatory agency monitors compliance within the industry but does not engage in representing individuals in these transactions. Thus, the life settlement broker’s role is vital in protecting and advocating for the owner's interests during the life settlement process.