When you’ve determined that the time is right, you can sell a company stock or parcel of real estate on the Open Market. We define an Open Market this way:   

“A market which is widely accessible to all investors or consumers”

By exposing a stock or real estate investment to the widest audience possible you are assured of receiving the fair market value and a maximum rate of return. However, in the past, selling a life insurance policy on the Open Market was simply not available.

Imagine  how poorly an investment would perform if it could only be sold to the same company or individual who originally sold it to you? Of course, this is would be a Closed Market, as the sale of the investment would only be accessible to a limited group of buyers.

Before the entrance of life settlements this is how undesired life insurance was sold; to only one buyer, who was the original life insurance carrier.

Here’s what happened: Before life settlements when a life insurance policy-owner desired to  relinquish themselves of the policy their only exit strategy was to 1) stop paying on the policy…in affect canceling or lapsing the policy  or, 2)  sell the policy back to the insurance company for the policy’s cash surrender value.

This non-competitive and closed market option limited the profit on the sale of a life insurance policy because the only buyer of the policy was the original insurance carrier who originally set the policy’s  cash surrender value.

But that was then, and this is now...

Next: The Senior Life Settlement market

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