LIFE SETTLEMENT INVESTOR EXAMPLE

life-settlement-investor-example.jpg
FEMALE - Age 79
$1,000,000 Universal Life
  • $48,258 Annual Premium

Life Insurance Settlement Amount of $190,000 Paid-up Insurance

When estate values and cash flows plummeted due to the stock market collapse, the children/heirs of a retiree could no longer afford the premiums for her universal life policy. A life settlement buyer purchased the policy for a life settlement fund to allow any eligible life settlement investor to purchase shares in it. In lieu of a cash settlement, the sellers received an irrevocable beneficiary designation for 19% of the death benefit ($190,000) and were no longer to pay any premiums.

Want to know what YOUR policy is worth?

Start LIVEpdq Here

Life Settlement Investor Defined

When we refer to life settlement investors on this website we mean individuals (not institutions) who purchase shares in securitized life settlement pools or fully diversified life settlement funds. We refer to the institutions who actually acquire policies as buyers and/or funders.

Individual Life Settlement Investor Should Not Buy An Individual Policy

We believe it is unethical for an individual life settlement investor to buy individual policies. Those transactions are contrary to the best interest of an insured whose timely death is necessary for the life settlement investor to receive their expected return. Therefore, we will not knowingly participate in the sale of individual policies to individual life settlement investors.

As life settlements become more main stream in the United States, shares in securitized life settlement pools and life settlement funds may become more available to individual life settlement investors who value these attributes:

  • Steady, non-correlated returns
  • Predictable liquidity
  • Understandable and measurable risks

The Future of Securitized Life Settlement Pools and Life Settlement Funds

Although life settlements have been negatively impacted by the retrenchment of capital resulting from the recent credit crisis, they are still a very desirable asset class in the current economic environment. As capital continues to return to the market, individual life settlement investors can anticipate new offerings of securitized life settlement pools and/or life settlement funds.