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Adrianna Willeford
Apr 15, 2021
In Cryptocurrency
For investors seeking an uncorrelated alternative investment with low volatility and predictable returns, there are few investments that deliver on this profile as well as life settlements. Life settlements are an investment vehicle where investors purchase life insurance policies on seniors with a life expectancy of 3 to 15 years for an amount higher than cash surrender value and less than the policy face amount. HISTORY 1980’s AIDS crisis: The life settlement industry was born in the 1980’s AIDS crisis, as afflicted individuals sold their life insurance policies for cash to pay for medical bills and enhance their final days. As AIDS treatments improved, the industry then focused on old-age mortality. 1990's–2000's: 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 14%-18% range. Increasing regulations in licensing: The industry became regulated in the majority of states, where licensing of life settlement brokers and providers became mandatory, along with the transparency of the entire process and fee structure.
Life Settlements: A Premier Uncorrelated Asset Class content media
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Adrianna Willeford
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