Excerpt from: Life Settlement Update
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| May 29, 2008 | | In a nut shell, it depends. Choosing the right broker is a critical decision and sometimes two might be better than one. | When you establish rapport and trust with your life settlement broker you are probaly better off giving that broker exclusive rights to represent your family in selling your life insurance. A life settlement is a competitive bidding process among many potential investors. When you have confidence in your broker, you are more likely to trust their ability to negotiate and hold out for higher bids.
Also in my experience, a life settlement is often part of a bigger financial picture. In addition to a life settlement, a successful financial strategy may involve purchasing replacement life insurance and financing techniques to reduce premium expenses. If you have a relationship with a broker that has the expertise to help you with financial solutions beyond just a life settlement, an exclusive arrangement is probably the right choice.
On the other hand...
If the broker you choose is a stranger, you may consider allowing two brokers to place the policy up for sale. By working with multiple brokers, you may not receive quite the level of personal service and your bid may not be quite as high as with an exclusive arrangement. However, if a broker knows that they have competition, it will give you confidence that they are motivated and likely a little more honest.
If you are searching for good professional help, this article will help you learn how to choose a good life settlement broker.
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