Industry Reports
Market data, growth trends, and key statistics about the life settlement industry.
Market at a Glance
$5.8B
Estimated Market Size (2025)
3,800+
Policies Settled Annually
4–7x
vs. cash surrender value
Average Settlement Ratio
43
States with Regulation
Market Growth (2018–2025)
Total face value of policies settled annually continues to rise as awareness and regulation mature.
Source: Life Settlement industry estimates (face value of policies settled)
Policies Settled by Type
Universal life policies dominate the secondary market due to their flexibility and prevalence among seniors.
Key Industry Findings
76 years
Average Policyholder Age
Most life settlement candidates are between 70 and 85 years old, with the sweet spot for qualification being 75+.
$1.2M
Average Face Value Settled
While policies as low as $100K can qualify, the average settled policy has a face value of $1.2 million.
22%
Average Settlement as % of Face
Policyholders typically receive 15–30% of face value, far exceeding the cash surrender value alternative.
88%
Policies That Lapse Without Value
An estimated 88% of universal life policies lapse or are surrendered — meaning billions in potential value goes unrealized each year.
9.8%
Growth Rate (CAGR)
The life settlement market has grown at approximately 9.8% annually over the past five years, driven by awareness and regulatory maturity.
20+ Funds
Institutional Buyer Competition
Over 20 institutional buyers actively compete for policies, creating a competitive marketplace that benefits policyholders.
Flat Fee vs. Percentage Commission
As settlement size increases, a 25% commission becomes dramatically more expensive than a capped flat fee. The gap grows wider with every dollar.
Predetermined capped fee based on the amount of the offer (capped at $60K). Your fee is fixed at the tier level — it never increases within a tier, no matter how high your settlement goes. Percentage assumes industry-standard 25% commission.
Industry Trends
Increased Advisor Awareness
Financial advisors and wealth managers are increasingly recognizing life settlements as a legitimate planning tool, driving referral volume and larger policy sizes.
Regulatory Maturation
43 states now have specific life settlement regulations, providing consumer protections including mandatory disclosure, rescission periods, and broker licensing.
Technology & Transparency
Digital platforms and data analytics are making the settlement process faster and more transparent, reducing time-to-offer from months to weeks.
Rising Premium Costs
Increasing cost-of-insurance charges on aging universal life policies are driving more policyholders to explore settlements rather than face lapse.
Flat-Fee Model Adoption
The industry is seeing growing interest in fee transparency. Flat-fee brokers are gaining market share as policyholders demand clarity on what they'll pay.
Sources & Methodology
Data compiled from publicly available industry reports, including the Life Insurance Settlement Association (LISA), Conning Research, and various state regulatory filings. Market size estimates reflect total face value of policies transacted. Individual results vary. See our full disclaimer.
Want to Explore a Settlement?
See how your policy fits into the market. No obligation, transparent fees.