The development of consumer regulatory protections, the entry of high-quality market participants, and continued favorable press have all validated the life settlement market.
Here Are 3 Key Regulatory Developments Which Have Cemented Life Settlements as a Valuable Financial Planning Tool:
1. In 1911, the U.S. Supreme Court ruling in Grigsby v. Russell established life insurance as personal property, setting the foundational principles for the future
of life settlement options. According to the court’s decision, individuals possess the legal authority to sell their life insurance policies as they would with any other type of property.
2. The NCOIL Life Settlement Model Act of 2010 passed by the National Conference of Insurance Legislators this model act incorporates multiple regulations that improved transparency and protects consumers in the life settlement market. Emphasizing comprehensive consumer disclosures, transparency, and enforces accountability ensuring that consumers are adequately informed and safeguarded during life settlement transactions.
3. Passage of Viatical & Life Regulations in 44 States/Jurisdictions has provided market participants and consumers with clear laws and regulations for each applicable state.
Here 6 Examples of the Types of Life Settlement Funders Anchoring the Market:
4. Banks
5. Insurance Companies
6. Private Equity Firms
7. Pension Plans
8. Hedge Funds
9. Other Institutional & Accredited Investors.
Favorable Life Settlement Press:
10. “One of the key benefits of a life settlement is the amount you could receive. While the amount received from selling the policy will likely be less than the death benefit, it will be more than the cash surrender value of the policy. If you no longer need the insurance benefits for your loved ones, selling a policy could save you money in the long run. Likewise, If you can no longer afford the policy premiums, selling the policy could net you some cash to pay your other bills.” US NEWS & WORLD REPORT – March 2024