The market for bonds backed by life settlements — so-called “death bonds” — has been even slower to pick up. May 2020 Volume 9, Issue 4AAP Life Settlement Market Update Many of Vida’s competitors must contract out their sourcing and underwriting to third-party vendors. Trend 1: Economic and capital drivers . What once was an unregulated financial transaction designed to help AIDS victims not covered by insurance pay for health care, has evolved into a well regulated, mainstream financial option for seniors. Empirical Investigation of Life Settlements: The Secondary Market for Life Insurance Policies ∗ Afonso V. Janua rio† Narayan Y. Naik‡ Current version: June 10, 2013 Abstract In recent years, a secondary market for life insurance policies, known as the life settlement mar-ket, has developed in the United States.

Today, U.S. seniors are made aware through articles, seminars, and advertising that there are alternatives to letting their policies lapse, including a life settlement at market value. Conning & Co. released an independent study of the market in November 2018 titled “Life Settlements: Continued Growth, Positive Outlook“. Goldman spokesman Michael DuVally confirmed that … Magna has been active in the life settlement industry since 2004 and was the top ranked life settlement provider in 2013, 2014 and 2016 by capital deployed. AA-Partner is a member of ELSA, the European Life Settlement Association. The company is domiciled in Zurich, Swit-zerland and provides consulting services as independent 3rd party for institutional clients. Life settlements have been in the market for over 30 years. Sellers may be given a variety of tax breaks or the proceeds of the sale may be ignored for the purpose of means testing when calculating state aid for long term care needs. An underpinning of the U.S. life settlement market was the landmark Grigsby v. Russell decision in 1911 where the Supreme Court ruled that life insurance is personal property that can be bought and sold. In fact, a 2019 report from The Deal showed a 28% increase in policies sold in 2018 compared to 2017, while the face amount of life insurance policies sold increased by about $1 billion, to an impressive $3.8 billion. Economic and capital drivers for life settlements are still encouraging.

An emerging use of life insurance policies, which is being encouraged by legislators in a growing number of states, is their sale into the life settlement market for the purpose of funding long term care. Over the past five years, the life settlement market as an industry has multiplied vastly both in funds to purchase policies and consumer awareness.

AAP Life Settlement Index and the AAP Life Settlement Market Review. There are several interesting findings in the report.