The life settlement option has been available for over 100 years. In 1911, the Supreme Court of the United States issued a landmark decision that recognized the rights of policy owners to transfer ownership of their life insurance policies. While life settlement was technically an option, the industry truly began to be recognized in the 1980's. 

During this time, Viatical Settlements has helped thousands of AIDS patients obtain the cash they so badly needed. However, during this time there were also individuals and organizations that did not treat policy owners fairly. Eventually AIDS medication was developed that left many investors holding policies that became unprofitable. Combined, the parties that mistreated policy owners and investors who did not profit, created a black cloud was cast over the life settlement opportunity. Some may still associate life & viatical settlement with negative feelings because of this stumbling step in industry history. 

In 1993, the National Associate of Insurance Commissioners (NAIC) elaborated a regulatory model act for Life Settlement that states began to adopt. States adopting regulation for life settlement began the process of putting in place protections for policy owners and investors. In 2000, the National Conference of Insurance Legislators also adopted a Life Settlement model act that states began to adopt. By 2005 life settlement was regulated in 25 states and by 2007 over 34 states had adopted some form of life settlement regulations. 

The industry continued to grow until 2008 when the recession (led by the real estate melt-down) reduced the capacity of life settlement funds available to buy new policies. By 2011 capital markets had renewed their interest in life settlement and the industry has seen steady growth every year. There is currently a shortage of life insurance policies (supply) rather than a shortage of life insurance funds (demand). 

Today, nearly every state has enacted laws to regulate the Secondary Market of sales of life insurance policies. In some states life insurance carriers are even beginning to be required to disclose to policy owners there is an alternative to lapsing their life insurance prior to a life insurance policy lapsing. All trends point to a bright and vibrant future for the life settlement industry.