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.


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