Life Settlements: Now, More than Ever

Clock June 08, 2020


Michael Coben of Lighthouse Life

By Mike Coben
Mr. Coben is the chief distribution and business development officer for Lighthouse Life, based in Conshohocken, Pennsylvania.

This post was originally published on You can read the full article there.

Life settlements are gaining greater acceptance and adoption by insurance and financial service professionals than ever before. The global pandemic has shined a light on the social good that life settlements represent by providing significant new sources of liquidity and income for retirees during this difficult time.

The growing acceptance of life settlements comes from many factors, including a well-regulated transaction that protects seniors, the understanding that life settlements meet best interest, suitability and fiduciary requirements for financial professionals, and seniors’ needs for resources to meet retirement and health care needs – especially at this unprecedented time.

Life settlements have become so well established that the National Association of Insurance Commissioners has recommended life settlements as an option to finance long-term care costs and the U.S. Congress is considering a tax incentive for seniors to use the proceeds from the sale of their policies to plan and pay for their health care.

What is a Life Settlement?

For those still uninitiated or uniformed (or even misinformed), a life settlement is the sale of a life insurance policy. The seller receives an amount that, on average, is four or more times greater than if the policy is surrendered, and infinitely more than if the policy lapses for no value at all. Life settlements create resources that enable clients to contribute to their retirement plans or to address immediate needs, like health care or long-term care.

Read the full article on