The Life Settlement market is all about providing due access to 
needed cash from existing life insurance.

This so-called free market referred to as the life insurance 
industry’s secondary market is based on a central premise, 
namely that the value of life insurance is best determined by 
independent market forces and has been validated in recent years 
by its rapid growth. It is also amazing to see the value creation 
and opportunities that this market presents. What it a life 
settlement and why may it be an attractive financial alternative 
to policy holders?

Various market providers in this sector of the industry are 
focused on servicing viatical settlements, life settlements, and 
senior settlements. Maximizing the profitable offering price for 
your life insurance policy in what is commonly referred to the 
secondary market for life insurance. Quite innovative, albeit 
counter-intuitive, advocating looking at things from a totally 
different perspective and finding new value in life insurance

Life insurance provides financial solutions to meet various needs 
of businesses and families. Over time, however it also needs to 
be dynamic and change with the holders and the/their demands. For 
example as loans are repaid , key executives retire, estates 
become smaller, businesses are sold, estate taxes are reduced — 
or better yet, no longer exist of in cases where the policy 
simply becomes too expensive it is definitely time to revisit 
said policy. 

Until just several years ago, individuals in the situations laid 
out about above were facing a monopoly, a market situation in 
which a seller can only sell to one buyer. Imagine if a 
homeowner, after living in the home for many years, was told that 
instead of being permitted to sell the home to any willing buyer, 
he or she could only sell it back to the original builder at the 
price determined by the builder. Clearly, no one would tolerate 
such a situation for homeowners, but it has existed for life 
insurance policy owners. For many years, policy owners have had 
only one buyer for their policies — the life insurers. The advent 
of a secondary market has lessened the monopoly power of life 
insurers and created a free market for policy owners to create 
value from and using their insurance. 

Before the advent of the secondary market, life insurance 
policies could not readily be sold, and it would have made little 
sense to speak of a policy’s fair market value. By its very 
existence, this new and growing secondary market for life 
insurance bestows on every policy a fair market value like the 
owner’s other financial assets. A life settlement can now 
be treated like any other financial vehicle. 

Institutional Life Settlement Funders
http://www.life-settlementco.com

Jon Thomas has been involved in finance and insurance, 
specializing in emerging growth markets since 1979.