Life Settlement Statistics
Discover the hidden value of your life insurance policy.
There has been a growing market for the purchase and sale of policies that do not meet the traditional definition of a viatical settlement. A Life Settlement is another solution, these life settlement transactions involve life insurance policies of a large face amount (often $250,000 or more), or involve �key-person� coverage or corporate owned life insurance or policies representing excess coverage that is no longer needed.
Term, Universal Life, Whole Life, Joint/Survivor, and Group contracts are policies that are eligible for a Life Settlement. The secondary market for Life Insurance was created for owners of Life policies that are no longer needed, no longer affordable, or no longer serve their original purpose. They also are beneficial to policy owners who are considering lapsing or surrendering their policy. A life settlement in most cases can provide a far greater payout than a cash surrender. In 2002 1.3 Trillion of Life Insurance was lapsed or surrendered. The Wharton School did a study in that in the year of 2002 Life Settlement providers paid 340 million to acquire policies with cash surrender values of 94 million. A 262% increase!! The ease of the Life Settlement process is a huge factor in the growth.
