THE OPPORTUNITY
- Improve Portfolio
Growth
- Lower Overall
Risk
- Achieve Financial
Prosperity
A Large & Clearly Defined
Asset Class
$20 Trillion
Total Face Value of
Policies Existing
in the U.S.
$900 Billion
Dollar Amount of Policy
Lapses that Occur
Each Year in the U.S.
Poised for Meaningful
Growth
$212 Billion
Avg. Annual Gross
Market Potential for
Life Settlements
(Forecast for 2019-2028)
Life Settlements Industry:
Limited policyholder & financial professional awareness are the primary contributors to the current market size — which is just beginning to scratch the surface of the assets full potential.
However, thanks to regulation & the establishment of both the Secondary & Tertiary Markets, the industry has seen a recent surge in capital allocation & new investor interest — a positive trend, expected to continue as more become aware of the advantages of this unique asset.
As Awareness of Cash-Out Options Permeates the Market, Policyholder Interest Will Naturally Grow:
Currently, ~90% of all life insurance policies written terminate without any payment (nearly 5% lapse annually). As it stands, those policyholders, unaware of cash-out options, end up with zero cash & zero insurance — even after years of paying premiums.
As Will the Desire to Identify Alternatives that Maximize the Value of the Policyholder’s Asset (i.e., Life Settlements):
This is highlighted in the fact that on average, insurance companies pay less than 1/3 of fair market cash value of a policy at disposition — often charging additional “surrender” fees in the process.