The Life Settlement Market Begins to Pick Up

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Leaders in the Life Settlement Industry Give Their Predictions on the Market

What once was a frenzied buyers market for life settlements has cooled off as capital sources froze and increased life expectancies made policies less valuable. But, experts in the life settlement industry told California Broker Magazine that tough financial conditions make life settlements more useful than ever - for clients who need fast cash to meet financial obligations to investors looking for a safer place to put their dollars.

Capital markets have picked up significantly since the fourth quarter of 2008 and the consensus among our experts is that capital flowing into the market should really pick up this summer. But, we are not likely to see a return to the frenzied buying environment that drove discount rates down to the high single digits.

Expect to see increased regulatory focus from the states. Many settlement entities created during the frenzied sellers market, serving as a non-value added intermediary, will fold or retool. Experts note that new programs offering alternatives to settlements, such as period certain premium finance lending for in-force polices are beginning to appear. Direct fractional ownership of life settlement policies by individual investors will become more mainstream and demand for policies and offers for policies could rise. Large investors will seek portfolios of policies, non-value added life settlement intermediaries will fold, and there will be a new push for life settlements for term policy, which do not have to be convertible.

About California Broker Magazine:

California Broker Magazine is the most highly respected insurance magazine in the state.

It has a 25-year track record of editorial and graphic excellence. The magazine has received two Golden Graphic awards from the American Society of Business Press Editors. The magazine has twice received the prestigious Paladin Award for service to the insurance industry from the Los Angeles Assn. of Health Underwriters.


Leila Morris
California Broker Magazine
818-848-2957 x10


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