top of page

What are Life Settlements and their History?

“The life settlement industry was born in the 1980s AIDS crisis, as afflicted individuals sold

their life insurance policies for cash to pay for medical bills and enhance their final days.”

Life Settlements primealpha.com

Life settlements are investment vehicles where investors purchase life insurance policies on seniors with a life expectancy of 3 to 15 years for an amount higher than the cash surrender value and less than the policy face amount. Investors receive a return based on the price paid for the policy (inclusive of premiums) and the death benefit received.


The History of Life Settlements:


The life settlement industry was born in the 1980s AIDS crisis, as afflicted individuals sold their life insurance policies for cash to pay for medical bills and enhance their final days. When the cure was discovered, the industry then focused on old-age mortality.



During the 1990-2000s, major Wall Street firms such as Goldman Sachs, Credit Suisse, Deutsche Bank, Berkshire Hathaway, and AIG discovered the non-correlated nature of life settlements, along with healthy gross returns in the 12% - 14% range. Since 2010, there has been an increase in licensing regulations, with life settlement transactions becoming regulated in most states. Licensing of life settlement brokers and providers became mandatory, along with the transparency of the entire process and fee structure.


Access the full report


Special Thanks to our Contributor

RiverRock Logo

RiverRock is a dedicated life settlements investment manager with over ten years of experience managing pooled investment funds investing in the secondary and tertiary markets for life insurance policies.


Hugh P. Tawney Director of Sales Office: +1 713.375.1307 Mobile: +1 410.952.2374 htawney@riverrockfunds.com


RiverRock is not affiliated with and does not endorse PrimeAlpha Insights.

About PrimeAlpha

​

PrimeAlpha is today’s leading technology platform for alternative investment opportunities founded in 2015. We generate connections and help investors discover differentiated opportunities.

​

PrimeAlpha was developed by industry practitioners as a cutting-edge technology platform to help managers and investors discover and network. Like many great solutions, PrimeAlpha was born from the pain points faced by both managers and allocators in the investment life-cycle and marketing and IR process. Today, PrimeAlpha optimizes ROI-driven solutions emphasizing engagement and efficiency through a technology-enabled yet high-touch platform.


If you want to learn more reach out to us at info@primealpha.com.

​

​

​

Important Disclaimers
This article (the “Article”) is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any investment or any securities. This Article does not constitute investment advice and is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. Readers should make their own investigations and evaluations of the information contained herein. The information contained herein does not take into account the particular investment objectives or financial circumstances of any specific person or entity who may receive it. Each reader should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained herein.  Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation. Certain information contained in this Article constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,”  “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. Readers should not rely on these forward-looking statements.  Certain information reflects subjective determinations which may prove to be incorrect. There can be no assurance that the estimates or projections will be accurate or that historical trends will continue. In considering the prior performance information contained herein, readers should bear in mind past performance is not necessarily indicative of future results. All rights reserved. The material may not be reproduced or distributed, in whole or in part, without the prior written permission of PrimeAlpha LLC. 

bottom of page