Faq

A life settlement is the purchase of an existing life insurance policy from someone who no longer wants or needs it. The investor continues premium payments and receives the policy payout when the insured passes away.

Returns are generated from the difference between total policy costs and the eventual death benefit, adjusted for timing, ongoing premiums, and risk.

Yes. Life settlements are a regulated market in the United States, with specific rules and disclosures that vary by state.

Key risks include premium funding risk, timing uncertainty, liquidity constraints, and underwriting assumptions not performing as expected.

Timing varies by policy and insured longevity. This is generally treated as a medium-to-long horizon investment rather than a short-term trade.

Life settlements are not tied to corporate earnings or property cycles in the same way traditional assets are. Many investors use them to diversify portfolio correlation.

Estimates are based on medical underwriting, actuarial data, and third-party life expectancy reports used to model expected policy duration.

Longer duration may require additional premium payments and can reduce modeled return assumptions. This is why stress-testing scenarios is important.

Investors seeking non-correlated alternatives and who understand timing and premium obligations may consider life settlements as part of a diversified strategy.

Start by learning the structure, completing suitability and onboarding requirements, and reviewing policy opportunities with full disclosure documents.