What do Life Insurance Companies Say about Life Settlements?
For over 150 years the life insurance industry remained basically unchanged. People bought life insurance to provide cash to loved ones after their death. It was a strong tradition that life insurance could not be sold to someone else. The only way to end a policy was to just let it lapse or “trade” it in to the life insurance company for the “Cash Surrender Value,” most often a fraction of the premiums paid. People are very familiar with this traditional view of life insurance and most are generally unaware of and even somewhat suspicious of the concept of selling their life insurance. This is a perspective that life insurance companies encourage. Generally speaking, life insurance companies do not like the concept of life settlements at all. Life insurance companies have aggressively tried to hold back the life ettlement market. They cite many passionate arguments to support their case but the reality of the situation is that the life settlement market threatens to reduce the very la
