The question was: Who are the life settlement intermediaries and do they all get compensated for their services in executing the transaction?
The answer is: Between the life settlor and buyer of the life settlement policy, there are usually three layers of intermediaries.
Each of the following requires a commission for their services and role in the transaction: 1) the life insurance agent, who has the customer relationship with the policyholder and 2) the life settlement broker, both of which are “sell side” transaction participants; and 3) the life settlement provider on the “buy side” of the process.
“The compensation for all three of these parties gets funded from the gross life settlement proceeds of course. However, the life settlement provider, working for the investor, negotiates its compensation with the life settlement buyer.