Who buys life insurance policies in a life settlement?
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Life insurance policies in a life settlement are typically purchased by licensed institutional buyers, not individual consumers. These buyers include life settlement providers, investment funds, pension funds, and other financial institutions that specialize in managing long-term assets.
What to know
Life insurance policies in a life settlement are typically purchased by licensed institutional buyers, not individual consumers. These buyers include life settlement providers, investment funds, pension funds, and other financial institutions that specialize in managing long-term assets.
They purchase policies because life insurance can function as a predictable financial asset. After acquiring a policy, the buyer becomes responsible for paying all future premiums and eventually receives the death benefit when the insured person passes away.
Because life settlements are a regulated financial transaction, buyers must be licensed by state insurance departments and follow strict consumer-protection rules. This regulatory structure helps ensure transparency and accountability throughout the process.
What this means for you
Through Settle’s marketplace, multiple qualified buyers can review a policy and compete to submit offers. This competitive environment helps policyholders understand the true market value of their policy and increases the likelihood of receiving a fair offer.
For seniors who no longer need or cannot afford their coverage, working through a transparent platform like Settle helps ensure their policy is evaluated by reputable, licensed buyers rather than sold for less than it may be worth.