Magna Life Settlements

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Institutional Investors

Institutional Investors

Investing in Life Settlements

A Life Settlement is a non-correlated asset class with high-growth potential. As a non-correlated asset class, a Life Settlement is isolated from equity or bond market volatility, interest rates, and political or global events than other traditional asset classes.

Its principle benefits include an alternative, long-term growth investment vehicle; portfolio diversification strategy; the potential for greater certainty of returns; chances for above average yields; and tax or currency gains. In addition, institutional investors have the flexibility to determine investment parameters.

Life Settlements is a growing asset class:

  • Total “in force” individual life insurance policies in the US is ~.2 trillion.1
  • The population over age 65 is expected to grow by approximately 90.4% by 2030.2
  • Life Settlements are forecasted to grow at a compound annual rate of 18.2% through 2017.3
  • The Life Settlements market was projected by Conning Research to reach between billion and 0 billion by 2016 from billion in 2007 and from almost   in 2001.
  • The market in unwanted life insurance policies was valued at billion in 2008, and is expected to continue to grow.
  • Aging population — individuals 65+ predicted to grow 3x faster than the total population over the next 25 years.4
  • US individuals are living longer and will often outlive the usefulness of their life insurance contracts.
  • Option to settle the policy becoming a fiduciary duty on the part of financial advisors, life insurance advisors and carriers (Georgia, Maine, Oregon).
  • Changes in estate planning needs.
  • 1 American Counsel of Life Insurance – Y/E 2008. Life Markets - Copyright 2009.
  • 2 United States Census Bureau, estimated population growth between 2005 and 2030
  • 3 Calculated as CAGR, assuming 31B in force during 2008 with an estimated growth to 140B in 2017.
  • 4 Bernstein Research

Magna Life Settlements, Inc. offers policy origination and acquisition services to institutional investors. Our experience in the Life Settlements market allows us to offer a wide range of services.

Our capabilities include:

  • Single policy or portfolio origination, pricing, underwriting and closing.
  • Access to a large supply of policies.
  • Strict underwriting and closing methodologies that meet the highest standards in the industry.
  • Policy or portfolio acquisition advisory.
  • Tertiary market transactions

Learn more about Life Settlements or view our Life Settlement Resources.