Life settlements trace their legal origin to the 1911 U.S. Supreme Court case Grigsby v. Russell, which established that a life insurance policy is personal property that the owner has the right to sell.
History
The right to sell your life insurance policy has existed for over 100 years. The secondary market that grew around it has become one of the most significant corners of financial services — and one of the most overlooked.
The U.S. Supreme Court rules that a life insurance policy is private property that the owner can sell to anyone, for any reason. Justice Oliver Wendell Holmes writes the opinion. The precedent stands to this day.
The AIDS crisis creates urgent need. Terminally ill individuals begin selling their life insurance policies to access cash while still alive. The viatical settlement market is born — a lifeline for thousands of patients.
As medical treatments improve life expectancy, the market expands beyond terminal illness. The "life settlement" — selling a policy based on age and health, not just terminal diagnosis — becomes a recognized financial transaction.
States begin enacting life settlement legislation. The NAIC develops model legislation. Consumer protections, licensing requirements, and disclosure rules are codified across the country.
The market matures into a multi-billion dollar industry. Institutional investors — pension funds, endowments, asset managers — become the primary buyers, attracted by an asset class uncorrelated to traditional markets.
Over $4 billion in life settlement transactions annually. More options, more competition, and better outcomes for sellers than ever before. And still, most policyholders have never heard of it.
Over a century of legal precedent protects your right to sell. Find out what your policy is worth in today's market.
Get a Free EstimateThe legal right to sell a life insurance policy was established by the U.S. Supreme Court in Grigsby v. Russell (1911). The modern life settlement market emerged in the 1990s.
Grigsby v. Russell (1911) is the U.S. Supreme Court case that established a life insurance policy as personal property. The ruling confirmed that policyholders have the legal right to sell their policies to third parties.