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 ~$10.2 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
- Aging population — individuals 65+ predicted to grow 3x faster than the total population over the next 25 years.4
- People in the U.S. 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