The Future of Life Settlements: Where is the Industry Headed?
December 2025 End-of-Year Outlook
As we close out 2025, the life settlement industry continues to grow—not just in transaction volume, but in awareness, sophistication, and strategic relevance. What was once a niche exit strategy is now becoming a mainstream financial solution for seniors, advisors, and fiduciaries across the country.
So what’s next?
Here’s what we see shaping the future of life settlements—and what it means for professionals who want to stay ahead of the curve.
1. Policyholder Awareness Is Rising
More policyholders are learning that a life insurance policy is a financial asset, not just a contract. As financial education around retirement options expands, clients are increasingly asking: “Can I sell this policy instead of just surrendering it?”
We expect continued growth in policyholder inquiries—and an even greater need for advisors to be equipped with accurate, up-to-date knowledge about life settlements.
2. Advisors Will Be Held to a Higher Fiduciary Standard
As awareness grows, so will expectations of transparency. Advisors who fail to mention life settlements as an option may face scrutiny—not just from clients, but from regulators and industry peers.
In the coming years, we anticipate more guidance and best practices encouraging (if not requiring) that life settlements be considered in appropriate planning scenarios, especially when clients are 65+ with large, underperforming, or no-longer-needed policies.
3. Investor Appetite Remains Strong
Despite market volatility in other sectors, institutional investors remain drawn to the stability and predictability of life settlement portfolios. With an aging population and a steady stream of policy opportunities, demand is expected to remain high—continuing to drive competitive bidding and strong payouts for policy sellers.
This means: brokers who bring policies to market will continue to see multiple buyers competing, helping to maximize outcomes for both clients and advisors.
4. Technology Will Streamline the Process—But Won’t Replace Expertise
Automation is already making policy analysis, underwriting, and data collection more efficient. But this remains a relationship-driven business. Policyholders want to talk to real people. Advisors need trusted partners.
We believe the most successful life settlement professionals will be those who embrace technology to enhance service—not replace it.
5. Regulation Will Tighten—And That’s a Good Thing
More regulation is on the horizon, especially around disclosure, transparency, and ethical practices. And while that may sound burdensome, it's ultimately a net positive for advisors and their clients. Clearer standards will protect sellers, raise industry professionalism, and help ethical brokers stand out from opportunistic buyers.
Looking Ahead to 2026
If 2025 proved anything, it’s that life settlements are no longer “alternative”—they’re essential. The conversation is shifting from “Should we consider this?” to “Why wouldn’t we?”
For advisors, the opportunity in 2026 is clear:
● Start the conversation earlier● Partner with a broker who advocates for your clients
● Make life settlements a standard part of policy reviews
Because the future of life settlements isn’t just bright—it’s already here.