Members of the Life Insurance Settlement Association paid $626.6 mn to consumers in 2025, up from $601 mn a year earlier. The figures came from LISA’s annual market data report, according to BestWire.
Consumers who sold life insurance policies to LISA members received almost nine times the cash surrender value available from life insurers. The average life settlement reached $212,066, compared with $24,360 for policyholders who surrendered coverage to an insurance company.
The average insurer cash value offer fell 27% in 2025, from $33,493 in 2024. LISA said the gap between settlement proceeds and surrender values returned an additional $554.6 mn to policyholders during the year.
Transaction volume also increased. LISA members completed 2,955 settlements in 2025, up 9.48% from the prior year.
According to Beinsure, the data points to stronger consumer use of the secondary market for life insurance policies as retirement costs rise and households reassess financial assets they already own.
Rob Haynie, Chair of LISA, said more consumers are reviewing how existing assets fit into their broader financial plans. He said many policyholders do not realise a secondary market exists for life insurance policies, even though it gives them options beyond surrendering coverage to an insurer.
The 2025 report marked the fifth year of market data collected by LISA. Across that period, nearly 15,000 life insurance policies were settled through the association’s members.
Abacus Life, a LISA member and alternative investment manager, rebranded last year as Abacus Global Management. The company said the new name reflects its broader geographic reach and expanded financial services model.
Abacus Global Management also reorganised its operations into four divisions: life solutions, asset management, wealth management and technology solutions.
