Life Insurance Settlement Market

Background of Life Insurance Settlements Market

A Life Insurance Settlement is the sale of an existing life insurance policy for a lump sum of cash that is more than the cash surrender value, sometimes 3 to 4 times. The amount paid to the seller is calculated based on the policy's face value and specific life expectancy of the underlying insured. Each policy is individually assessed.

The US market is highly regulated on a state-by-state basis with strict confidentiality and disclosure requirements. Life Insurance settlements are currently regulated in 20 states in the US. Currently, more than US$9 trillion of life insurance policies are in force in the United States, of which US$150 billion are eligible for life insurance settlement. The life insurance settlement industry has grown from $0 in the 1990's to US$13 billion.

A Life Insurance Settlement is a viable financial planning tool. Find out if your or your client's life insurance policy can qualify for a settlement by calling 1-888-973-8377.