Life Settlement Acquisitions involve aggregating a block of Life Settlement policies as an investment; as policies “mature” (insureds die) the Buyer/Aggregator receives the proceeds as a return on their initial investment. While everybody knows that 100% of the people who sell their life insurance policy to a Buyer/Aggregator is going to die, the two issues the Life Settlement Acquisitions Buyer/Aggregator needs to address are
1) how much of a lump sum to pay for the policy and
2) how much money it will take to keep coverage in force until the insured dies.
The ROI is the net present value of
1) + 2) compared to the death benefit. Where it gets tricky is
2) because the Buyer/Aggregator has to know how good the underwriter is at projecting Life Expectancy because if the underwriter is bad and the insured lives a lot longer than the underwriter projected the Buy/Aggregator either doesn’t make much money or they lose money. If you want to get connected to experienced brokers who work with the best underwriters and find out more about life settlement aquisitions simply answer a few questions here LIVEpdq.