Life Settlements Are Definitive Financial Instruments With Great Surety


The acquisition of high investment grade (AAA equivalent) Life Settlement Insurance Policies can provide investors with a valuable tool in mitigating the risks associated with raising capital for seed stage, development stage, venture capital and other higher risk investment ventures.

Life settlements are definitive financial instruments with great surety; there is the certainty of a payment event, a secure expectation of payment from an “A+” rated insurance company, and a clear expectation of the payment amount. Life settlements are analogous to U.S. treasury zero-coupon bond instruments, which have the least amount of risk ( high investment grade), but with the potential to generate much higher returns that is normally available, over a shorter period of time. Also, there is no tax impact on life settlements until maturity ( the death of the insured). In addition to using these instruments to mitigate investment risk, life settlements can also represent a strong stand-alone investment opportunity for qualified institutional clients or private clients.

With life insurance held by people over 65 estimated to be in excess of $1 Trillion in North America alone, it is clear that life insurance settlements is a market with large growth potential, one deserving of investor consideration. According to a 2005 Bernstein Research report, it is estimated that the ” secondary market for life insurance will grow more then tenfold to 160 billion over the next several years ”

Investing in life settlements has gained attention from many high-profile proponents. Warren Buffett has invested several billion dollars of Berkshire Hathaway insurance subsidiary investment capital and Bill Gates has invested over half a billion of his own personal wealth in this low tech investment vehicle. Many hedge funds, Pension funds and various major banks are also large investors and numerous media sources including The Wall Street Journal, Time Magazine, and The Economist have given this industry serious attention.

Investors in Venture Capital Funds, Oil Exploration Funds, Film Development Funds and other early-stage higher risk investment opportunities can completely collateralize their principal through life settlements driven risk hedging strategies.

A very strong secondary market has developed which provides near term liquidity for any owner of life settlements. Once an investment is performing the policies can be resold at a profit. A life settlement increases in value every year as the life expectancy of the insured gets sorter. If the original purchase of the policy was well researched and a market price was paid for it, then the investor will most certainly generate a profit on the resale. It is the absence of a long-term commitment that makes life settlements a very good strategy to preserve an investors capital in a venture investment.

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 Life Settlements

" Life Settlements have been available in the US as a fantastic investment product for decades and are now finally available in British Columbia. It is a socially responsible product that help people and your portfolio at the same time.

Aspire Life Settlements Ltd
#104- 19916 64th Ave
Langley BC V2Y 1A2

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