Life Settlement Investments
The Life Settlement industry has experienced phenomenal growth in recent years from investors seeking non-correlated investments with aggressive returns and high credit quality risk. However, it must be kept in mind that Life Settlements are sophisticated investments that should be purchased by investors who are experienced in the industry. They must also be purchased by and through state specific licensed Life Settlement Providers.
ALIR is licensed and experienced in handling these investments and transactions. Our credentials allow us to provide accredited and institutional Life Settlement funds as well as a proven framework that investors can utilize to obtain Life Settlement policies. From single policy origination transactions to large portfolios built with a unique set of purchase parameters, we provide transaction fulfillment and underwriting.
- A robust portfolio of life insurance policies for sale
- Appropriate purchaser licensure
- Pricing tools
- Comprehensive policy servicing
- Ownership and title change
- Informative financial reporting
- Tertiary transactions
- Broker licensure confirmation
- Broker compensation
- Stringent underwriting and closing criterion
- Comprehensive and timely support
Sophisticated investors know how important strategy is in the marketplace. One of the many exciting facets of the Life Settlement industry is the fact that there are many unique strategies that can be implemented around a Life Settlement Investment. The Life Settlement fund or end buyer often dictates the type of strategy that will be utilized.
Listed below are just a few examples of the types of strategies that we have been known to help implement in our investment transactions.
- Traditional Life Settlements – In a Traditional Life Settlement, the Fund will pay the policy owner a cash amount that is above the surrender value and below the death benefit. The Fund or Institution will then take over the premiums for the remainder of the life of the insured. In this strategy, premiums are usually kept to the minimum non-level premium possible per year.
- Paid-Up Death Benefit – In this strategy, the Fund will take over only the policy seller’s premiums. The seller will receive no immediate cash. The policy beneficiaries will be assigned a paid-up amount directly from the insurance carrier, which will be paid upon the death of the insured. The original policy owner will no longer be required to pay any further premiums. The Fund that purchases the policy is then responsible for paying the premiums and will receive the remainder of the death benefit not contractually promised to the seller’s family or trust upon the death of the insured.
- Annuity Premium Plan – In this strategy, we can help purchase Single Premium Immediate Annuity (SPIA) from the insurance company of the policyholder, which will in effect pay the premiums on the policy for the remainder of their life. This plan is particularly helpful for reducing longevity risk, and can be paired with either of the strategies listed above.
- Tertiary Transactions – Much like mortgage loans and other investment vehicles, Life Settlements are often sold and then resold as a liquidation strategy. A Tertiary Transaction is the purchase and sale of a policy that was formerly purchased by another institution and is no longer owned by the original policyholder. In this strategy, we offer assistance to Life Settlement Institutions and Funds with buying, marketing or selling the Life Settlement asset.
Reach out to us
If you are an institution or accredited Investment Company that is interested in learning more about the Life Settlement industry and how to get involved, please don’t hesitate to contact us.