As the possibility of a global double dip recession looms in the distance, the life settlement market is seeing some positive signs. After a difficult 2009 and early 2010, life settlements look poised to be on the rise. Overall, industry participants are cautiously optimistic about the near term future of the secondary life insurance market.
While many life settlement providers have not been buying policies in the recent past due to a lack of funding, some are starting to report good news. Inactive providers are waking from their hibernation with new capital to spend on American life insurance policies.
One positive sign was the stark increase in the Amrita Life Settlement Index last month. The jump was mostly based on positive forward looking sentiment and a spike in buying activities during the month of April. Life settlement provider bidding activity surged, which suggests a more competitive marketplace. The more active bidding and buying equates to a healthier overall market and ultimately better returns for policy sellers.
With a Life Insurance Settlement Association trade mission to Europe and explicit interest in the American life settlement market from European interests, many in the United States were hoping for a recovery based on international investment. The recent Euro Dollar decline and European sovereign debt crisis has left investors from across the pond somewhat impotent. European investment funds and institutions are cautiously sitting on capital to preserve liquidity.
Europe probably won’t lead the United States life settlement recovery, many are optimistic about its future prospects. Life settlement providers are receiving funding to buy insurance policies and are more active in the marketplace as a result.
Looking to find the best advice about a life insurance settlement, then visit www.amritafinancial.com.
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