Investors have had, and continue to have, favorable attitudes toward life insurance settlements. This positive outlook continues into the future. This is great for clients. More money flowing into the market translates into more and better offers for clients. Two new statistics are out that demonstrate the robust nature of the life insurance settlements market.
The European Life Settlements Association (ELSA) surveyed their members, and 44% of them said that they are looking to increase their allocation of life insurance settlements this year. Here is the full article with more detail:
In addition, a two year study just concluded, also from Europe, focusing on the volume of life settlements transactions. 47.1% of all transactions were for policies of $500,000 of face value or less. Another 25% were for face values of $500,001 - $1,000,000, meaning that 72.1% of all transactions were for face values of $1,000,000 or less. This demonstrates that life settlements are a solution for everyone, not just clients with large policies (a common misperception). In addition, transaction volume is expected to increase.
The United States data should be released from the Life Insurance Settlements Association (LISA) in the next few months, and I will be sure to share that data. I expect it to show the same strong data.
Do you have a client that no longer wants, no longer needs, can no longer afford their life insurance policy, or would like to repurpose it for long term care needs? Selling a life insurance policy can be a good financial solution.
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