Play It Again.

Thirty years ago, the first mass-market VCRs were introduced.  Remember what happened next?  The big studios panicked.  If people can watch movies in their homes, the reasoning went, why would they ever go to the theater again? 

Obviously, the industry’s doomsday fears were misplaced.  And this is a valuable lesson for insurance advisors as the life settlement industry grows.  The fact is, the more power you give to consumers, the more value they associate with you and your product.  Which translates into a stronger, healthier, and more profitable market.

The VCR ignited such an evolution in Hollywood.  It transformed the public into true consumers of movies.  People could own their own films, share them, and play them whenever they wanted.  Movies were no longer just for a special night out.  They became intertwined with people’s daily lives.  The more people interacted with movies, the more value they ascribed to them.   The film business boomed.  And the fear that cinemas would have to be shuttered?  People willingly paid more for the one movie experience they couldn’t get at home – sitting among an audience in front of a big screen. 

Today, the secondary market for life insurance is paralleling this development.  As with movies, access to life insurance has traditionally been tightly controlled.  People have been entirely beholden to the carriers (like they once were to the studios).  But life settlements and other transactions are shifting decision-making power into the hands of consumers.   Policyowners now have the ability to begin using their policies as they decide.  And they are beginning to see more uses – and greater value – in life insurance.