Agents and Advisors, Life Settlements and Compensation
March 2, 2021 by Lucas Siegel
Although life settlements are increasingly popular as a liquidity solution for cash-strapped seniors, they’re still a subject of confusion for many financial professionals.
To clear up the big question straight away, life settlements are completely legal. They’re regulated in most U.S. states to protect policyholders, investors, life settlement brokers, and insurers from fraud.
As well, it’s also legal for financial advisors and licensed life insurance agents to receive compensation for facilitating a life settlement. Depending on the situation, that compensation can come in the form of referral fees, override fees, commissions, or earnings on the client’s reinvestment of the proceeds.
Here’s a deeper look at those earnings opportunities and how they apply to financial advisors and licensed life insurance agents.
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