The Life Insurance Settlement Association says the recent change in economic conditions could increase the number of life policyholders who want to sell their policies.

Some policy owners may decide they want to sell their policies to get the resources to keep other, more cherished assets, according to LISA, Orlando, Fla.

“Perhaps they have been over-sold on insurance or had expectations of greater assets that now seem realistic,” LISA Executive Director Doug Head says in a statement. “A life settlement is both logical and appropriate for some consumers and represents a value judgment which is entirely appropriate for others.”

State regulators and the National Association of Insurance Commissioners, Kansas City, Mo., should change their approach to life settlements, to make consumers aware of the possible benefits of selling in-force policies as well as the risks, Head says.

Regulators also ought to make it clear to consumers that policy owners now can sell policies even if they are relatively healthy, Head says.