The life settlement market continues to provide a significant benefit to American Seniors who sell their life insurance policy in the secondary market, according to industry group the Life Insurance Settlement Association’s (LISA) 2024 Market Data Collection Survey.
The survey, now in its fourth year, anonymously aggregates year-end data from LISA’s licensed life settlement provider members, who are estimated by LISA to have executed over 90% of all transactions in the life settlement secondary market in 2024. The headline is that the average multiple delivered to American Seniors who sold their policy in the secondary market last year was more than six and a half times the cash surrender value.
“LISA’s latest Market Data Collection Survey once again illustrates the value that our industry brings to the American Senior,” said Neal Jacobs, Senior Managing Director, Capital Markets, Coventry, and current LISA Board Chair.
“A more than six and a half times multiple is higher than either 2023 or 2022, reflecting a strong demand from institutional investors for this asset which in largely uncorrelated to other asset classes. The impact of our market on the personal finances of policyholders and their families is significant and sometimes life changing.”
In 2024, the aggregate value of all 2,699 transactions completed by LISA licensed life settlement provider members was $601m, some $511m more than would have been the case had those policies been lapsed or surrendered.
“One of LISA’s core missions is to educate American Seniors about the potential benefits of selling their life insurance policy in the life settlement secondary market,” said Bryan Nicholson, Executive Director at LISA.
“And the data shows that life settlements have a compelling case for inclusion in a holistic retirement planning strategy. Year after year, hundreds of millions of additional dollars over and above the cash surrender value are paid to American Seniors thanks to our industry. LISA looks forward to being a continued and consistent advocate for our market, not only on behalf of our members, but the industry more broadly.”
