Growth in Life Settlements Market
The life settlements market is experiencing significant growth, according to recent reports. In 2022, life settlement transactions increased by 4% compared to 2021. This uptick is backed by data showing more policies being settled and higher cash payments to consumers.
The life settlement market saw $823 million in cash payments to policyholders in 2022. This is a sharp rise from $715 million in the previous year. Similarly, the total face value of settled policies grew to $4.5 billion, up from $4 billion in 2021.
Leading industry players also saw strong activity in the first months of 2023. This heightened activity hints at continued growth in life settlements. Analysts forecast that steady growth will likely persist over the next decade.
Economic pressures are driving consumers to seek new income sources. Investors, in turn, are looking for alternative assets. Both of these trends benefit the life settlements market. There’s a growing direct-to-consumer market, widening access for more people.
Conning, an investment management firm, has projected positive trends for life settlements. They forecast an average annual volume of $5.2 billion in new life settlements over the next decade. This is an attractive opportunity for investors.
A significant driver of this growth is the aging U.S. population. Over 10,000 Americans turn 65 each day, according to the U.S. Census Bureau. The youngest Baby Boomers are now in their mid-70s, making them prime candidates for life settlements.
Older adults often face a retirement funding shortfall. This is due to fluctuating equity markets and poor bond returns. Life settlements provide an immediate financial boost without out-of-pocket expenses or debt.
The life settlement industry offers practical solutions for seniors. Millions of life insurance policies lapse or are surrendered each year. Selling these policies can yield much higher returns for policyholders than surrendering them.
This option offers seniors immediate cash for their needs. It’s a safe, ethical, and well-regulated transaction. Seniors can obtain a fair market appraisal of their policies quickly. This helps them compare it to the insurance company’s cash surrender value.
For institutional investors, life settlements are now a mainstream investment class. They offer double-digit returns that are uncorrelated with traditional assets. This makes them a valuable addition to diversified investment portfolios.
Life settlements benefit both policyholders and investors. Policyholders get cash to meet their financial needs. Investors gain access to a stable, high-return asset class. This creates a win-win situation for all market participants.
The growing demand for life settlements is evident. More seniors are becoming aware of this option. The economic landscape makes it an increasingly attractive solution for many.
We specialize in providing financial flexibility through life settlements. Our expertise helps policyholders access cash they need now. We also offer unique investment opportunities for those looking to diversify their portfolios. Our services are relevant to anyone considering selling their life insurance policy. We’re here to help you meet your changing financial goals.
