The life settlement industry looks nothing like it did several decades ago, when it was unfamiliar to most and highly complex, depending on physical documentation and protracted communication via snail mail and phone calls. The result was that it often took a long time to execute a life settlement transaction.
These days, though, the industry has experienced significant technological improvements—and roughly three decades of gaining a better understanding of the market—that make communicating about and carrying out life settlements significantly faster and easier.
As the new year approaches, we’re reflecting on how the life settlement industry has been transformed through consistent change since its inception, including rapid technological progress and recent transformative milestones like the COVID-19 pandemic. This blog post will describe the life settlement industry in its current form, outline its latest developments, and highlight its opportunities and challenges.
The Most Notable Trends in the Life Settlement Industry in 2024
Here are four of the most significant trends defining the life settlement industry as 2024 approaches:
1. Transitioning from virtual back to in-person conferences
The pandemic forced us to conduct our conferences virtually for several years. However, in the fall of 2023, those involved in the life settlement industry could finally connect in person. This provided many new opportunities to network among leading life insurance agencies, agents, and advisors.
2. Clients expect faster policy appraisals
Agents and advisors are looking for ways to speed up policy appraisals to assess the value of life insurance policies in the secondary market. Clients expect more immediate policy evaluations so they can set realistic expectations for the viability of their policies as soon as they begin the settlement process.
3. Clients demanding greater transparency
In addition, clients expect more transparency regarding where capital is coming from and how the life settlement process actually works. Making the life settlement process not only faster but more transparent and honest will improve client satisfaction.
4. Reducing cumbersome procedures in life settlement transactions
The overly complicated procedural hurdles currently involved in life settlement transactions clash with our modern emphasis on quick, digital transactions across virtually all industries. Advisors and agents are struggling with these outdated processes, seeking to simplify and optimize them so that they’re less cumbersome for all parties to a transaction.
2024 Priorities for Agents & Advisors in the Life Settlement Industry
If you’re an agent or advisor in the life settlement industry, here are thee top areas of opportunity to look out for in 2024:
1. Adopt a systematic strategy for life settlement opportunities
We encourage advisors and agents to utilize a systematic, step-by-step approach to finding new life settlement opportunities. Collaborate with seasoned partners specializing in lead generation, qualification, and back-office support to advance in the life settlement market.
2. Learn about the “buying box”
Agents should be aware of the concept of the “buying box.” This term describes life insurance policies that meet specific criteria that make them especially suited to life settlements. If you can identify promising policies for settlements based on these features quickly, you’ll be able to achieve greater profits in 2024.
3. Advisors Should Include Policy Appraisals in Client Planning
We also recommend that advisors include policy appraisals in their existing client planning. Just as you would assess the market value of financial assets like real estate, knowing the value of your client’s life insurance policies helps you paint a picture of their overall financial situation and standing to help them make more informed decisions in the future.
Looking Forward to 2024
In 2024, the life settlement industry will likely see further exciting shifts as the market matures. In particular, prioritizing faster policy appraisals, greater transparency for clients, and fewer cumbersome procedures in settlement transactions will be essential. Agents and advisors are also expected to continue incorporating policy appraisals and life insurance settlements into their services in light of these assets’ potentially significant financial value.
With decades of experience appraising life insurance for the secondary market, PolicyAppraisal.com provides a trusted partner for life insurance agents. We offer a reliable alternative to traditional life settlement options, ensuring you and your clients receive fair value for their policies without hefty commissions. We would like to help you with a streamlined life settlement experience. Contact PolicyAppraisal.com today.