The downturn in the economy in 2008 has certainly taken its toll on the life settlement market, but some experts expect a much brighter outlook for the remainder of 2010 and into 2011.
The life settlement market suffered from the downturn in the financial markets in 2008, but was also gut-punched by the change in life expectancies at the same time. A key element to pricing a life insurance policy that is for sale is how long the insured is expected to live. This is determined by a 3rd party company that will review the medical records on a client and will determine, statistically speaking, approximately how long a person has to live.
In 2008, several key life expectancy valuation companies changed their valuation tables, which caused increases in life expectancies by as much as 30%. Since rates of expected return dropped significantly, investors sought other places in which to invest their capital.
Today, insiders have seen an increase in companies willing to invest in the life settlement market. The biggest benefit is to cash-strapped seniors that may wish to sell a policy that is no longer affordable. Cash from a life settlement could go to further fund a retirement plan.
To determine how much your policy is worth, visit our online valuation tool, LIVEpdq!