Life settlement securitizations have picked up some renewed interest in recent weeks, and the sector is better placed than ever to live up to its volume potential. However, it still needs to get a few things in order for it to really take off.
A life settlement is the sale of a life insurance policy to a third party. It's been referred to commonly as senior settlement, senior life settlement and also, with those involving the terminally ill, viatical settlement. It may also involve an owner selling his or her policy before maturity. A viatical settlement is for those who have a life expectancy of 24 months or less.