What are Life Settlements?

Life Settlements is the term used to describe the secondary market for Life Insurance Policies in the United States. A policyowner transfers the rights to the policy to a third party for an agreed sum. The new owner then becomes the beneficiary and continues to pay the premiums until the death of the insured, whereby they receive the full value of the policy.

The market exists due to the substantial size of the life insurance market in the United States and the fact that there is demand for a viable alternative to allowing policies to lapse and the evolving requirements of the senior population.

Investors have recognised the advantages of life settlements as an investment proposition and various investment options are now available for international institutional investors.

QutetionGlobal institutions are now looking for non-traditional alternatives both in type of investments and in risk adoption