HOME | July 07, 2022


Life Settlement Overview

Life Settlements are a unique asset class that is available for both cash as well as IRA transfers and 401k rollovers. Life Settlements are considered "non-correlated” because their payout is not dependent on or affected by the ups and downs of the stock market, interest rate fluctuations, domestic and world economy instabilities, or unexpected global events. Their integrity is further enhanced by the fact that the payout comes from the largest, most financially stable life insurance companies in the world. The Life Settlement vehicle is designed to provide peace of mind and confidence.

The Wall Street Journal, September 21, 2004

“If you look at this investment on a risk-adjusted basis, it’s a very solid return. Insurance companies don’t default on life insurance.”
— Weiss, Miles

Participating in a Life Settlement involves buying the beneficiary interest of a life insurance policy or policies and receiving the payout of the death benefit just as any beneficiary of a life insurance policy receives the payout at maturity. The participant knows the future payout upfront and receives a lump sum payment when each policy matures based on their ownership interest of the death benefit. What is not known is the exact time that the policy will mature and this is known as longevity risk. Because the longevity for a single policy can never be predetermined, a fractional interest structure was developed to spread ownership across several policies. By offering a fractional ownership interest in the death benefits of several policies, it allows the participant to diversify their longevity risk. When policies are selected with a strict process in regards to age and health, the average longevity across all policies becomes more predictable.