• Why would a policy owner sell their policy?
  • Premiums paid by the policy holder become unaffordable and the policy may lapse.
  • Estate planning needs have changed.
  • Funds may be needed for long term care.
  • Beneficiaries may have changed due to death or divorce.
  • Disposal of key main insurance or other business related insurance.
  • Changes in needs for the coverage.

• What’s in it for me?
  • Strong Returns
    • Potential for early maturities.
    • Viable alternative to traditional fixed instruments.
  • Diversification
    • Non-correlating asset to the stock or bond markets, thereby shielded by its fluctuations and losses.
    • Separate and distinct asset class.
  • Inexpensive
    • Deeply discounted A-rated or better life insurance policies.
    • Strong intrinsic value.
  • Unique
    • Low maintenance.

• A Growing Market
  • Life Settlements are considered to be a new asset class and is a thriving industry in many countries throughout the world.
  • The market includes buyers such as hedge funds, private equity groups and banks in the U.S., Asia, and Europe.
  • As indicated in the graph, the life settlement industry has shown a positive growth year after year for the last 10 years *Estimates project transactions to exceed $160 billion in the year 2030.

 *1. Life Insurance Long View – Life Settlements Need Not Be Unsettling; Bernstein Research Call; Kamath, Suneet and Timothy Sledge, March 4,2005; page 8.