Overview of Settlement Market

According to recent industry reports, the Life Settlement market is expected to continue an upward climb with regard to total transactions.  The awareness of this new market has given financial planners the ability to effectively audit insurance policies and recommend innovative solutions for the new wealth they create.  

Life Settlements have been around since the late 1990’s, at that time they were called viaticals and were purchased on the lives of people who were terminally ill.  Total volume of transactions for policies
at that time was less than $100 million.  

The aging baby boomer generation and their parents coupled with innovative funding options available to the secondary market have facilitated a competitive increase in the price of life insurance policies.  Settlement companies have more money available to bid on policies than ever before.
 
We shop our client’s policy to over 40 settlement companies to be sure we find the client the best possible offer.  Certain settlement companies are more competitive with certain types of policies than others which is why it pays to work with Brown, Brown & Gomberg/CPS.  We look at the entire market instead of just a handful of settlement companies. 

Most settlement companies are willing to purchase individiual term and permanent universal life, variable universal life and whole life, as well as survivorship term and permanent insurance policies with a face amount of $100,000 to $25,000,000.