Read about the 5 Advantages of Life Settlements as an Asset Class
We work with advisors and their institutional, non-profit, or accredited investor clients to help them with Insurance-Linked Products. We are an active brokerage in the life settlement marketplace and have many opportunities with Private Placements into the Senior Life Settlement Marketplace.
A life settlement is a financial transaction in which a life insurance policy holder sells a
no longer wanted or needed policy to an investor for more than the cash surrender value offered by the life insurance company. The investor pays all subsequent premium payments to the life insurance company and receives the contract face value
at maturity.
For the policyholder, life settlements have opened up a secondary market providing
enhanced market values for his or her policy, rather than the lower cash surrender value offered by the life insurance company.
Our Principal of Brookfield Insurance Partners is a licensed life settlement broker and has access to many life settlement providers. Our relationship with many of these life settlement providers has afforded us the ability to purchase life settlements through Direct Fractional Offerings and Private Placement Offerings as a Placement Agent. We are also sponsoring our Private Placement Memorandum.
We work with Registered Investment Advisors (RIA’s), Family Offices, Accredited Investors, Charitable Foundations, Hedge Funds, Pensions Funds, CPA’s and Attorney’s in building a life settlement pool as part of a diversified portfolio.
For the investor, a portfolio of life settlements offer a comparatively low risk-return
trade-off compared with equities. Further, life settlements diversify overall investment
risk because mortality rates are not correlated with other asset classes.
As a non-correlated asset class, a Life Settlement is isolated from equity or bond market volatility, interest rates, and political or global events than other traditional asset classes.
Its principle benefits include an alternative, long-term growth investment vehicle; portfolio diversification strategy; the potential for greater certainty of returns; chances for above average yields; and tax or currency gains. In addition, institutional investors have the flexibility to determine investment parameters.
Investor Benefits
Senior Life Settlements are considered a non-correlated asset class. All policies are being purchased at a discount factor which yields immediate profits for investors.
Some of the primary reasons investors have chosen to invest in life settlements are:
- Senior Life Settlements are alternative investments that diversify an investors portfolio
- Senior Life Settlements have no correlation to traditional markets and asset classes
- Upon maturity, life settlements have a known policy maturity value (the death benefit)
- The policies are provided by highly rated (“A” or better) U.S. life insurance companies, including John Hancock, Met Life, Lincoln Financial, etc
- While exhibiting low volatility, life settlements have a potential for strong returns
- Senior Life Settlements are always bought at discounted values to their intrinsic value
Distinct Advantages to Purchasing
- All investor’s money is safeguarded, held and administered by Bank of Utah as Escrow Agent.
- Policies are owned by a trust with no access to the funds by Brookfield Insurance Partners, or any other party, other than the Escrow Agent.