Beginning several years ago, the Life Insurance Settlements Association (LISA) began collecting data on the life insurance settlements market. Their members represent 95% of the market. Here is a synopsis of the life settlements market statistics for 2022:
3100 life settlement transactions completed
$770 million paid to consumers for the sale of their unwanted life insurance policies
$610 million more than the amount consumers would have received if their life insurance policies had been lapsed or surrendered
5 times higher than the cash surrender values offered by the life insurance carrier
$250,500 more in American’s pockets, on average, for the completion of their life settlement
According to LISA, policies with more than $100 billion of face value are lapsed by seniors over age 65 each year. And, policy surrenders number in the millions each year. The key statistic is that only 3100 clients sold their policies last year. Many more could have, they just didn't know that selling a policy is an option. By lapsing or surrendering a policy, walking away with little or nothing, clients can be leaving tens of thousands or hundreds of thousands of dollars behind. Before you or your client lapses or surrenders a life insurance policy, please consider selling the policy. This can be a much better option. We're here to help