Meeting Life’s Changing Needs
In a Smart New Way
There are a number of good reasons
for a policyholder to consider a Life
Settlement:
• Surrendering or lapsing a
policy is in question
• Insurance needs have changed
• Beneficiaries have been outlived
• Premiums have become
unaffordable
• The insured needs new life
insurance, an annuity or long-term
care coverage
• Estate taxes are changing
About Life Settlement
The Secondary Market for Life Insurance: A Dynamic New Asset & Planning Tool
A Life Settlement is the sale of a life insurance policy, usually by a senior for an amount greater than the current cash surrender value. Proceeds from a Life Settlement can be used in any way – and are often used by policyholders, together with their financial advisors, to fund other financial products. Today they represent a unique, dynamic planning tool that can help further an individual’s financial goals and well-being in many ways.
Overview: The Life Settlement Industry
From Zero to $10-Plus Billion Volume – In Under a Decade*
The Life Settlement market was created in the late 1990s with the goal of providing a liquidity alternative for elderly citizens with life insurance polices. Since that time, the market has expanded at an exceptional rate. According to
Bernstein Research Call, dated March 2005, made the following predictions regarding the life settlement industry:
• The potential volume is estimated to be $160 billion
• Purchases of Life Settlements grew at an astounding pace – up from $200 million
in 1999 to over $10 billion in 2006
• The expected growth in 2007: 50%
* Bernstein Research Call, March 2005
