In this final post of the series, we’ll focus on how various parties are involved in a life settlement securitization and how their roles could impact this important potential source of capital for the life settlement market.
Most already play an important role in the existing life settlement market, such as the life settlement provider who acquires the life settlement policy from the seller, and the life expectancy provider that provides the longevity estimate that is used for pricing throughout the life settlement market.
However, the issuer is the one party that is unique to a life insurance settlement securitization. The issuer is normally bankruptcy-remote entity that was established to:
1) Acquire life settlement policies
2) Issued securities collateralized by the life settlement policies
3) Hold other assets to service the interests of note holders
All of the issuer’s responsibilities are normally outlined in the legal document that reflects the debt obligation to the note holders. During future posts we’ll look at some of the other parties that are involved in the general life settlement market as well as securitizations. In addition, we’ll look at each parties duties and responsibilities.
If you would like to find out if you COULD qualify for a life settlement use our quick and easy LIVEpdq tool.