Meet Darla.

Darla, 71, is currently in a nursing home. She does not like the quality of care she is receiving at the current care facility, but she does not have the freedom to upgrade to a facility that is equipped with better amenities because of limited cash flow.

Darla is an ideal candidate for Life Settlements, but in order to prevent malpractice, she needs to know who to go to and what questions to ask. These are some consumer tips on what to ask your Life Settlement broker to find out if they truly have your best interest in mind:

Get quotes from several companies to make sure you have a competitive offer.Find out the tax implications. Not all proceeds received from the sale of your life insurance policy are tax free.

• Does the broker know that any of your creditors could claim your cash settlement?
• Find out if you will lose any public assistance benefits such as food stamps or Medicaid if you get a cash settlement.
• Does the broker know that the buyer of your policy can periodically ask you about your health status. The buyer is required to give you a privacy notice outlining who will get this personal information.
• Will your broker check all application forms for accuracy, especially your medical history?
• Make sure the Life settlement provider agrees to put your settlement proceeds into an independent escrow account to protect your funds during the transfer.
• Find out if you have the right to change your mind about the settlement AFTER you get the money. If so, how many days do you have to reconsider and return the money?