Paying for Care Needs - Life Insurance Settlements Market Continues to Grow

Lisa Rehburg
Editor’s Note:  Lisa Rehburg was one of the esteemed speakers at PRO’s June 27th Zoom, “Village Meeting”. If you have a Life Insurance Policy, whether it be a whole life or a term policy that you no longer need for its original purpose or you find yourself not being able to afford the premiums, or you are in need of cash – for care, for purchasing equipment, remodeling a room for a PWP, or even just for fulfilling your bucket list, we urge you to speak to Lisa Rehburg of Rehburg Life Insurance Settlements. You have only to gain.  

The life insurance settlements market continues to grow, which is great for clients who are trying to find ways to pay for assisted living, memory care, home care, aging in place and other long term care requirements. Selling a life insurance policy can be just such a solution.

Finding additional funding sources not only helps PRO’s constituents, but helps advisors, and other businesses, as well. I thought the state of the life insurance settlements market would be of interest.

The Life Insurance Settlements Association (LISA) had their annual Institutional Investor Conference last week, and shared statistics about the market. The takeaway? Wonderful news for clients! In 2021:

• Approximately 3,000 policies were sold through life settlements

• Clients realized $750 million in sales proceeds

• Proceeds averaged 7.8 times cash surrender value

• Clients received $660 million ABOVE lapsing or surrendering their policies.

The potential is even larger. The American Council of Life Insurers fact book of 2021 shows 9.18 million life insurance policies lapsed in 2020, representing $645.2 billion of face value. Seniors leave approximately $100 billion of face value behind annually, per LISA.

And you know that our senior population is continuing to expand, meaning these numbers will continue to increase, and the solution life insurance settlements can be/will continue to be an important option.

When helping someone find resources to pay for care needs, ask them if they have a life insurance policy, whole life or term. Selling a policy may bring them more financial value than lapsing or surrendering their policy. 

We’re here to help. Please feel free to contact me with any questions, or to discuss specific scenarios. We also have a Basics of Life Settlements Handbook, published by LISA, that I am delighted to send to you. Just let me know.

It is a privilege to be of service to you! 

Lisa Rehburg was one of the esteemed speakers at PRO’s June 27th Zoom, “Village Meeting”. If you have a Life Insurance Policy, whether it be a whole life or a term policy that you no longer need for its original purpose or you find yourself not being able to afford the premiums, or you are in need of cash —for care, for purchasing equipment and remodeling a room a PWP, or even just for fulfilling your bucket list—we urge you to speak to Lisa Rehburg of Rehburg Life Insurance Settlements. You have only to gain. Lisa has been a Wellness Village member since July of 2019. Find her at ParkinsonsResource.org/rehburg-life-insurance-settlements/