A Life Settlement Broker Surety Bond is a license and permit surety bond required by certain government jurisdictions. A Life Settlement broker is an investment broker who buys a life insurance policy from the policy owner while they are still alive at a price discounted from the face amount of the policy but usually in excess of the premiums paid or current cash surrender value. The seller gets an immediate cash settlement that they often use to cover medical expenses as they anticipate their life expectancy to be short. The bond guarantees that the life settlement broker will dutifully perform all legal duties and responsibilities to the consumer in this transaction.
These bonds are also known as Viatical Settlement Broker Surety Bonds.