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Jun 16, 2020

Life Settlement Opportunities That Defies Volatility

Life Settlement Opportunities That Defies Volatility

Life settlements are attracting more institutional investors due to their low volatility and independence from traditional market fluctuations.


This investment strategy is increasingly popular among entities seeking stable, uncorrelated returns with potential high gains. With more sophisticated players entering the market, the liquidity and competition for purchasing life insurance policies have grown.


As the market has evolved, it is now well-regulated and features a robust secondary and tertiary trading environment. Despite rising costs due to increased competition, smaller investors can still find opportunities by directly purchasing policies, avoiding the inflated prices of pooled investments. This method of diversification within life settlement funds helps manage risks and optimize returns, making life settlements an appealing option for those looking for non-traditional investment avenues in uncertain economic times.


Access the full article to delve into the growing appeal of life settlements among institutional investors, driven by their low volatility and independence from traditional markets. Learn about the evolving market landscape, valuation factors, acquisition strategies, investment returns, and diversification opportunities within this unique asset class.



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Table of Contents

  • Introduction of Life Settlements

  • The Origin of Life Settlements

  • How it Benefits Policy Holders

  • Current Observations on the Industry

  • Factors of Valuation of Life Settlements

  • The Importance of Policy Acquisition

  • Underwriting and Valuation Process

  • Rates of Return and Investment Durations

  • Diversification Within Life Settlement Funds

  • Risk Management

  • Further Diversification




Thanks to our Contributor


HedgeACT

www.hedgeact.com


HedgeACT was launched in 2014 with the goal of enabling financial advisors to easily add non-correlated, historically alpha-generating private placement alternatives to their existing model portfolios.


HedgeACT Philosophy

  • Griffin Asset Management LLC is an SEC Exempt Reporting Advisor (ERA)

  • Source hard-to-find, unique managers

  • Non-correlated both to the equity and bond markets, and with each other

  • Goal to generate consistent, positive returns with limited negative volatility

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