Life Settlement Example 1
| Insured | Age 77 |
| Face Amount | $1,000,000 |
| Cash Value | $103,500 |
| Life Settlement Value | $200,000 |
| Premium | $30,000 |
| Life Expectancy | 6 Years |
| Planned Return | 22.6% |
Life Settlement Example 2
| Insured | Age 78 |
| Face Amount | $2,000,000 |
| Cash Value | $0 |
| Life Settlement Value | $500,000 |
| Premium | $30,000 |
| Life Expectancy | 8 Years |
| Planned Return | 15.4% |
Life Settlements
What is a life settlement?Life Insurance Settlement (“Life Settlement”) is the sale of an existing life insurance policy to a third party for more than its cash surrender value but less than its net death benefit.
The life insurance policy is a non-contestable unilateral contract that is guaranteed to pay out its face value.
The Benefits of life settlement investments
| - Security of Invested Principal | - Non-correlated asset |
| - No market driven risks | - Portfolio diversification |
| - No market driven volatility | - FASB accounting guidance issued in 2006 |
| - Absolute fixed dollar return | - Duration match for future bond obligations |
| - Certainty of amount & payment | - 100 year track record of policy performance |
Industry Links
Life Insurance Settlement Association
National Confrence of Insurance Legislators
National Association of Insurance Commissioners