Life Settlements

Our team of industry experts provide strategic advisory services in the aggregation, analysis, marketing, management and liquidation of life settlement portfolios. We can work with you to develop targeted niche asset plays or Billion dollar portfolios.

The returns from life settlement investments are very attractive as they are based on the characteristics of the pool of the insured lives, and not on the performance of traditional market forces, such as the stock market, the real estate market and interest rates.

The life settlements market is currently estimated to be about $12-15 billion annually and is expected to grow very quickly to approximately $170 billion over the next couple of decades. Globally, large institutional investors and hedge funds are allocating dedicated funds to life settlement assets to improve their overall portfolio return.

Why do people sell their life insurance policies?

Most people acquire life insurance early in their careers as a means of protecting their income and family in the event of an unexpected event. However, over time, changes in people’s circumstances often mean that individuals want access to the value “locked-in” their life insurance policy prior to their death. These changing circumstances could include the following:

• The insured may have outlived the beneficiaries the policy was originally intended to protect.
• Premiums may have become unaffordable and unless sold as a Life Settlement, the insured may have to let the policy lapse.
• The insured may be financially secure and have no further need for the policy.
• The insured may wish to make a gift of the monetary value of the policy while they are still alive.
• The insured may sell the policy for estate planning purposes.
• The insured is considering whether or not to lapse or surrender the policy.

In circumstances where the alternative for the insured is to let the policy lapse and lose a potentially large portion of the premiums which have been paid on the policy, a Life Settlement is an attractive option. Sophisticated investors recognize the positive return from such investments and make capital available to assist insured who would like to sell their policy.