The life settlement industry was born in 1911 when Supreme Court Justice Oliver Wendell Holmes Jr. and his fellow justices ruled that life insurance is private property and can be legally assigned by its owner. The decision came from a lengthy battle that began when John C. Burchard sold his life insurance policy for $100 to his doctor, Dr. Grigsby, and Dr. Grigsby agreed to assume the remainder of the premium payments (that were overdue already) in exchange for the death benefit. After Burchard’s passing a year later, the executor of this estate contested this transaction, and that’s when the case was brought before the highest court.

After the recession in 2008, more laws to protect policyholders, investors and insurance companies have been put into place, making the industry one of the most well-regulated and transparent financial transactions in the country, and ever more appealing to policyholders and investors alike. In fact, more regulations sparked an increase in life settlement activity.

Currently, forty-three states and Puerto Rico now regulate these transactions, and an estimated 90% of the entire US population is protected by comprehensive life settlement laws and regulations, which tend to focus on these top three protections:

Everything is getting more expensive these days. Gas prices are higher, food prices are higher, used car prices are higher—it seems like nothing right now is immune from the effects of inflation. And it’s not going away anytime soon.

It’s true—according to “The Life Settlements Report” released by The Deal, 3,241 people sold their life insurance policies in 2020 for a combined total of over $848 million. It’s a staggering number, and despite the societal impacts of the  COVID-19 Pandemic, it represented a significant increase over the amount that was sold the year prior.

Many life insurance policy owners may wonder where to start when pursuing a life settlement provider. Selling a life insurance policy is an important decision for policyholders to make and one that should not be taken lightly. They need to know they can trust their provider to help them sell their policy, which is why the decision must be evaluated on a case-by-case basis. Having a complete understanding of your client and their goals is imperative in guiding them in their determination of how to choose a life settlement provider. 

Life settlements are a great way for retirees to gain a bit of extra cash in times of need. They are generally a win-win for everybody involved, from your clients who receive them to the institutions that invest in them. While there are lots of rules and regulations surrounding the selling a life insurance policy, it can definitely be a great way for policyholders to receive funds if they realize they no longer want or need their policy. In this blog, we’ll cover a few reasons why your client may need a life insurance settlement.

The life settlement industry has been on a steady rise since the 1980’s, with Conning predicting a 1-2% increase since 2019. The direct to consumer segment of the life settlement industry has also experienced growth during this time as well, with life settlement companies following the retail and travel industries who have operated on this model for years. In this blog, we’ll explain how the method works and who these companies represent. 

There are many reasons to work with a life insurance professional and your clients may be asking for more information on the options of working with a specific life insurance professional. How do you provide all the information for your client that is simple and straightforward? This article can help. Let’s go over the top 5 reasons to work with a life insurance professional.