HOME | August 20, 2017
 
 




 

Life Settlements Industry

Life Settlements have recently become an increasingly popular alternative asset class, especially in light of the recent mortgage meltdown, financial turmoil on Wall Street, and government bailouts. The Life Settlement market has rapidly grown into a $20 billion industry and is predicted by Bernstein Research to develop into a $160 billion market in a few short years.

Mostly supported by institutional investors comprising various brokerage houses, hedge funds, pension plan portfolios, and even Warren Buffett’s firm Berkshire Hathaway to the tune of $400+ million (as reported by Senior Market Advisor), the Life Settlement can also apply to individual participants at lower entry-level participation amounts.



“HEDGE FUNDS BUY LIFE INSURANCE POLICIES TO PLY NEW PROFIT PATH”
Bloomberg, December 1, 2005

“The industry’s annual returns of 12% to 24% first attracted European and Asian investors. And a few years ago, Berkshire Hathaway, Inc., the investment vehicle of billionaire investor Warren Buffet, began buying Life Settlements...”
— Karen Richardson


Life Settlements are often used as a diversification tool in portfolios as well as a defensive strategy since the payout is not dependent on or affected by a soft economy, stock market volatilities, interest rate fluctuations, real estate and mortgage markets, oil prices, unexpected global events, or other traditional economic factors.



“VIATICALS’ MAY DRAW MORE INSURERS”
The Wall Street Journal, May 18, 2005

“Even the most diversified portfolios were devastated as the S&P shed 38 percent toward the end of 2008. The first part of 2009 is proving to be an encore performance. With the retirees of America looking for solutions to their portfolio woes, a shining light is rising in the world of “safe”financial options—Life Settlements.”
— Don Rasmussen