The Traded Life Policy (TLP) market is set to benefit from a legislative change in Washington State requiring life insurance companies to inform policyholders they have an option of selling their policies rather then letting them lapse.
This new measure was introduced to protect policyholders, giving them the option of cashing in their life insurance policies and legally obliging insurance companies to disclose this option. Around $23trn of death benefits existed in the US in 2006, making it the largest life insurance market in the world. It is anticipated the legislation will be replicated across the US states, providing a massive boost to the TLP market as the supply of life policies will be increased. This will offer more choice and reduce cost for investors. According to TLP fund provider MPL, currently 85% of insura...
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