An Unsettled Matter of Life and Death: A Public Policy and Marketing Commentary on Life Insurance Settlement

Life insurance settlement (LIS) is a US$15 billion global industry and is expected to grow tenfold or more by 2040, It involves the controversial practice of investors acquiring the life insurance policies of living people and then receiving the proceeds of the policy after the death of the insured. This article examines LIS exchange and consumption from a consumer-focused public policy and marketing perspective. The authors find that the vast potential of LIS to meaningfully expand consumer choice has yet to be fully realized as a result of (1) LIS consumers often being inherently at a high risk of experiencing vulnerability, (2) inconsistent and inadequate industry regulation, and (3) ethically or legally questionable industry marketing practices. Public policy recommendations are formulated with a view toward facilitating regulatory reform that benefits both LIS consumers and ethical LIS marketers.