The life settlement industry is a rapidly growing industry. During the 90′s the settlement industry became popular do to the AIDS epidemic. Many policy holders sold their insurable interest to an individual or a company for the living benefit of the insurance policy. Many of these policy holders were taken advantage of and offered pennies on the dollar for the their policies . The settlement industry has gotten better at taking care of the interest of the insured by putting maximums on commissions and minimums on what the policy holders will receive from a settlement.
The life settlement industry is not widely excepted by the insurance industry because it takes insurance policies that would potentially lapse and takes them all the way to the death of the insured forcing these large companies to pay out. Many states require companies to offer a life settlement as an alternative to a policy holder to letting the policy lapse. Life settlement companies in many cases turn a problem into an equity for their clients. People sometimes run out of options in these trying times and selling their life insurance policy is like an act of god.
The life settlement industry is an ever changing industry do to the overall performance of the secondary market and the overall state of our economy. For more information please go to LIVEpdq.