A life settlement is a financial transaction in which a policyholder sells an existing life insurance policy to an investor for more than its cash surrender value, but less than its net death benefit.

Advantages of Investing In Life Settlements

• • Diversifying Investment Strategies: Investing in life settlements is a way to diversify a portfolio and add an uncorrelated asset to a portfolio.

• • Attractive Risk/Reward Ratio: The return on life settlements investments can be high, relative to the risk associated with them.

• • Tax Benefits: Many life settlements are structured to provide investors with tax benefits, including the potential for tax-free income.

How to Invest In Life Settlements

• • Research firms: Do research on specialty life settlements firms, or general financial firms that facilitate life settlements investments, as well as life settlements funds.

• • Know Your Risk Tolerance: Investing in life settlements is for investors who have a high risk tolerance and are willing to accept a higher return for taking on that risk.

• • Review Insurance Policies: Carefully review any insurance policies in the portfolio to understand the terms and conditions of the policies.

• • Develop a Strategy: Develop a strategy for investing in life settlements, including topics such as risk management, portfolio diversification, and tax planning.

• • Stick to the Plan: Stick to the plan and regularly review the portfolio performance to make sure it is consistent with the initial strategy.