Life Settlement Broker Near Me: Finding the Top Life Settlement Companies

If you are searching for a life settlement broker near me, you are already ahead of most people. The majority of seniors who let their life insurance policies lapse have no idea they could have sold them instead. A 2010 study found that 90% of seniors who lapsed their policies would have considered selling if they had known the option existed.

You know the option exists. Now you need to find the right company to work with.

The life settlement industry includes dozens of licensed companies across the country. Some are brokers who represent you. Others are direct buyers who purchase policies for their own portfolios. Understanding the difference and knowing which companies have the best reputations can mean the difference between a fair payout and leaving money on the table.

This guide will help you find a life settlement broker or provider, explain the major players in the industry, and give you the information you need to make a smart decision about selling your life insurance policy.

Broker vs Provider: Which One Do You Need?

Before you start searching for a life settlement broker near me, you need to understand the two types of companies in this industry.

Life settlement brokers work for you. They act as your representative in the transaction, shopping your policy to multiple buyers to generate competing offers. Brokers have a fiduciary duty to act in your best interest, which means they are legally obligated to prioritize your needs over their own.

When you work with a broker, they gather your policy information and medical records, then present your case to multiple life settlement providers. The broker brings back all the offers and helps you evaluate which one makes the most sense. Their goal is to get you the highest possible payout.

Brokers earn commissions on the sale, typically ranging from 10% to 30% of the gross policy value. That commission comes out of your proceeds. However, the competition a broker creates often results in a higher gross offer, which can offset the commission.

Life settlement providers are the actual buyers. They purchase policies directly from policyholders, either for their own investment portfolios or on behalf of institutional investors like hedge funds and pension funds. When you work with a provider, you are selling straight to them without a middleman.

The advantage of working directly with a provider is simplicity. There is no commission to pay, and the transaction can sometimes close faster. The disadvantage is that you only get one offer from one buyer.

Neither approach is inherently better. The right choice depends on your situation, the size of your policy, and how much time you are willing to invest in the process.

How to Find a Life Settlement Broker Near You

Life settlement transactions are handled remotely in most cases. You do not need a broker in your city or even your state to sell your policy. The process involves paperwork, phone calls, and electronic signatures. Geography matters less than reputation and experience.

That said, you do need to work with a company licensed to operate in your state. Life settlements are regulated in 45 states, and companies must hold valid licenses in each state where they do business.

To find a licensed broker or provider, start with your state insurance department. They maintain lists of licensed life settlement companies and can tell you if any complaints have been filed against a particular company. This should be your first stop before working with anyone.

You can also check with the Life Insurance Settlement Association, known as LISA. This is the industry trade group, and member companies must annually attest to following a strict code of ethics. LISA membership is not a guarantee of quality, but it does indicate a company takes compliance seriously.

If you live in Alabama, Missouri, South Carolina, South Dakota, or Wyoming, be aware that your state does not regulate life settlements. This means fewer consumer protections and no licensing requirements. You will need to be extra careful vetting any company you work with.

Top Life Settlement Companies

The life settlement market has grown significantly over the past decade. Transaction volume has more than tripled since 2015, and research estimates the gross market potential at $212 billion through 2028. That growth has attracted many companies to the space.

Here are some of the most established players in the industry.

Coventry Direct is one of the largest life settlement providers in the country. They have been in business since the 1990s and handle a substantial share of the market. Coventry is a direct buyer, meaning they purchase policies for their own portfolio rather than brokering them. They have a streamlined process and extensive advertising presence. You have likely seen their commercials.

Abacus Life is a major direct buyer that went public in 2023. They purchase policies directly from consumers and have been in the industry since 2004. Abacus offers multiple options including traditional life settlements and hybrid plans. They also have an online calculator that provides nonbinding quotes.

Magna Life Settlements is a direct buyer owned by Obra Capital. They have been active in life settlements since 2004 and serve all 50 states. Magna has invested heavily in consumer education, with an extensive library of written and video content on their website.

LifeTrust takes a different approach than most providers. Based in New York, they focus on education and helping policyholders understand whether a life settlement actually makes sense for their situation. Rather than pushing for a quick transaction, they walk people through all their options, including alternatives like keeping the policy, borrowing against it, or using accelerated death benefits. If you want someone who will give you an honest assessment without pressure, they are worth talking to.

Lighthouse Life focuses on simplicity and transparency. They have expanded through acquisitions and work to help policyholders understand their options before making a decision.

This list is not exhaustive. There are dozens of licensed providers operating across the country. The California Department of Insurance alone lists more than 20 licensed providers in that state.

What to Look for in a Life Settlement Company

Choosing the right company matters. Here is what to evaluate.

Licensing comes first. Verify that any company you consider is licensed in your state. You can do this through your state insurance department. If a company cannot provide their license number or hesitates when you ask, that is a major red flag.

Experience matters. Companies that have been operating for 10 or 20 years have track records you can evaluate. They have survived because they treat customers fairly and operate professionally. Newer companies are not automatically problematic, but they have less history to assess.

Understand their role. Know whether you are working with a broker or a direct buyer. Brokers represent you and shop your policy around. Buyers purchase directly for their own portfolios. Both can work well, but you should understand the relationship.

Ask about compensation. Brokers must disclose their commission before you sign anything. Direct buyers do not charge fees, but their profit comes from the spread between what they pay you and what your policy is worth to them. Either way, understand how everyone makes money.

Check for complaints. Contact your state insurance department and the Better Business Bureau. A few complaints over many years might not be concerning, but a pattern of problems should make you cautious.

Look for transparency. A reputable company explains their process clearly, tells you what to expect at each stage, and keeps you informed throughout the transaction. If a company is vague or evasive about how things work, find someone else.

How Life Settlement Payouts Are Calculated

Life settlements typically pay between 10% and 35% of the death benefit, though some policies sell for more. The average payout is four to seven times higher than the cash surrender value you would receive from your insurance company.

Several factors determine how much your policy is worth.

Policy size matters. Larger death benefits generally command larger payouts. Most companies require a minimum policy size of $100,000, though some work with policies as small as $50,000.

Your age affects value. You typically need to be at least 65 to qualify for a life settlement, though some companies work with younger policyholders in certain circumstances. Older policyholders generally receive higher offers because buyers expect a shorter time until the death benefit pays out.

Health status is critical. Buyers are essentially betting on life expectancy. If your health has declined since you purchased the policy, your policy is worth more to buyers. This might seem counterintuitive, but it is how the math works.

Policy type matters. Permanent policies like universal life and whole life are most desirable. Term policies can sometimes be sold if they have a conversion rider that allows you to convert to permanent coverage.

Premium costs affect offers. Buyers take over your premium payments after purchasing your policy. Higher premiums mean higher ongoing costs for the buyer, which reduces what they are willing to pay.

Outstanding loans reduce value. If you have borrowed against your policy, that outstanding balance will be factored into any offer. The loan does not disqualify you, but it does reduce your net payout.

The Life Settlement Process

Selling a life insurance policy typically takes two to four months from start to finish. Here is what to expect.

You start by providing basic information about your policy and health. This allows the company to determine if your policy is likely to qualify and give you a preliminary sense of value. Many companies offer free estimates at this stage.

If things look promising, you complete a formal application and sign releases allowing access to your medical records. The company gathers documentation including your policy details, premium history, and medical information.

Your information goes to medical underwriters who prepare a life expectancy estimate. This report is a key factor in determining your policy's value to buyers.

You receive offers. If you are working with a broker, you may receive multiple offers from different buyers. If you are working directly with a provider, you receive one offer.

You decide whether to accept. You can negotiate, ask for better terms, or walk away entirely. Nothing obligates you to sell.

If you accept, you sign closing documents transferring ownership. The funds go into escrow, the policy transfers to the new owner, and then payment releases to you.

Most states require a rescission period after closing, typically 15 days, during which you can cancel the transaction and return the funds. After that window closes, the sale is final.

Red Flags to Avoid

The life settlement industry is regulated, but that does not mean every company operates ethically. Watch for these warning signs.

High pressure tactics are a major red flag. A legitimate company gives you time to make an informed decision. Anyone pushing you to decide immediately is not looking out for your interests.

Unrealistic promises should make you skeptical. If someone guarantees you will receive 50% of your death benefit before evaluating your policy, they are not being honest. Every policy is different, and legitimate companies do not make promises they cannot keep.

Vague answers about fees or compensation suggest something is being hidden. You have the right to know exactly how much everyone involved in the transaction is making.

Reluctance to provide licensing information is a dealbreaker. Licensed companies readily share their license numbers and encourage you to verify them. Anyone who dodges this question is a problem.

Unsolicited contact should be approached with caution. If someone reaches out to you offering to buy your policy, verify their licensing before sharing any personal information. Legitimate companies exist, but so do scammers.

Getting Started

If you think selling your life insurance policy might make sense for your situation, start by getting your policy evaluated. Most companies offer free estimates based on your policy details and health information. There is no obligation, and it gives you real numbers to work with.

Contact multiple companies. Compare what they tell you. Ask questions about their process, their compensation, and their timeline. Take your time.

Your life insurance policy is potentially one of your largest assets. Make sure you work with someone who will help you get what it is worth.

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal, financial, or professional advice. Life settlement regulations vary by state, and this content should not be relied upon as a substitute for consultation with a licensed professional. Please consult with a qualified attorney, financial advisor, or licensed life settlement broker before making any decisions regarding the sale of a life insurance policy.