With the U.S. population growing older and baby boomers hitting retirement age, life settlement plans are likely to see a boost in the coming years. These plans allow life insurance policyholders to sell their existing policies on a secondary market for a negotiated cash amount that is more than the cash value of the policy but less than the net death benefit. This has industry participants forecasting substantial growth in the sector and searching for opportunities to expand their platforms, even into in the capital markets.

The estimated life settlement potential is $90 billion to $140 billion per year between 2007 and 2016, according to data from Conning Research cited in a Legacy Benefits presentation for Houlihan Lokey in April.

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