The primary life settlement investment risks are longevity risk, liquidity risk, carrier risk, and servicing risk. Of these, longevity risk — the possibility that the insured outlives their actuarial life expectancy projection — is the most significant, as it directly reduces the investor’s annualized return. According to AIR Asset Management, longevity risk is the biggest […]
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A life settlement works by transferring ownership of a senior’s life insurance policy to an accredited investor. The investor pays a lump sum greater than the policy’s cash surrender value, assumes all future premium payments, and collects the full death benefit when the insured passes away — generating 8–12% annual returns with zero correlation to […]
A life settlement investment is the purchase of an existing life insurance policy from a senior policyholder in exchange for a lump sum. The investor assumes future premiums and collects the full death benefit upon the insured’s passing — generating 8–12% annual returns with zero correlation to stocks, bonds, or real estate. According to the […]
