The national average life settlement value has fallen substantially as a result of the recent increases in the life expectancy estimates used to price transactions, an executive in the market says.

Investors often are paying prices ranging from 5% to 8% of a policy’s face value, according to David Pryor, national sales manager of Settlements for Life L.L.C., Memphis, Tenn.

Payments amounting to 14% or 15% of face are considered “a great deal,” Pryor says.

Before the life expectancy estimates changed, investors were paying an average of about 23% of a policy’s face value, Pryor says.