Benefits of life settlement investing*
Life settlements combines many of the attractive features of both fixed income and equity investing.
In particular, the asset class has a history of providing:
*Past performance is no guarantee of future results
Double-digit annualized performance with minimal drawdowns
Exposure that is uncorrelated to other asset classes and the global economy
High quality issuers, low default rates and a senior claim on assets in the case of a credit event
Like any investment, life settlements does involve risk.
Tertiary market activity of financial assets like these is typically muted
Life policy termination may occur significantly later than forecast which can negatively impact returns
Third-party purchasers of life policies are responsible for premiums – a missed payment can potentially nullify the policy
Insurance is a highly regulated industry with stringent capital requirements. Despite this, policyholders are exposed to the issuing insurance company’s credit