Like any other financial based industry, the life settlement industry has experienced a series of highs and lows throughout the years. In the past, the lack of proper education about the practice, as well as the decline in the U.S. economy has stifled the growth of the life settlement industry, however currently, life settlements are regarded as a viable option for investors, as well as individuals looking to rid themselves of high life insurance premiums. Listed below are of few of the main reasons as to why the supply and demand for life settlements is growing.

1. Boost in U.S. Economy. The economic crisis that the U.S. experienced in 2008 led to a decline in the value of the U.S. dollar as well as a decline in a number of markets including the stock market, housing market, and even the more uncommon industries such as the life settlement industry. Needless to say the life settlement industry struggled during that time because of the lack of investors. However over the past few years, the U.S. economy has experienced a much needed boost. As a result, more investors are able to invest more money in life settlements.

2. Industry Awareness. For most of its existence, the life settlement industry was one of the least popular options for individuals over 65 years old who no longer had a want or need for their life insurance policies. This was largely because not many people knew of the life settlement industry and the benefits in which it provided. These days the life settlement industry is in the limelight thanks to organizations such as the Life Insurance Settlement Association (LISA), who work hard to education life settlement brokers, life insurance agents, and even the general public on all matters regarding life settlements.
3. New Regulations. As the life settlement industry continues to grow, more regulations are being implement to protect and benefit both sellers and investors. For example, recently a number of states passed a law that requires life insurance agents to make their clients aware of the life settlement option. Previously, the fact that life insurance agents didn’t present the selling of a life insurance policy as an option, played a huge role in the stifled growth of the life settlement industry.

Ultimately like most industries, the success of the life settlement industry is dependent on both the sellers and the investors. Luckily both the need for life settlement investors and the need or want to sell life insurance policies, is at an all-time high. In addition, the outlook of the life settlement industry appears to be extremely promising. The basis of this industry’s success is the continued education of seller, investors, brokers, and even life insurance agents.