Generally speaking, life settlements are an option for high-net-worth policy owners age 65 or older.  Independent estimates report that among this group, 20% of policies have a market value that exceeds the cash value offered by the carrier.

And while many policy owners are unfamiliar with life settlements until a financial professional mentions the option to them, the concept has gained attention from high-profile proponents such as Warren Buffett, former U.S. Representative Bill Gradison, and numerous media sources including The Wall Street Journal, Time Magazine, Business Week and The Economist.  A growing number of experts now believe that informing clients about offering life settlements should fall under the fiduciary duty of a financial adviser.

How Long Has The Life Settlement Market Been Around?

The life settlements investment industry was created in Europe around 1880.  However, it did not become established in The United States of America until approximately in 1980, when the AIDS epidemic generated an urgent necessity to use the funds trapped within life insurance policies to fund expensive medical treatment and vaccines for those suffering from either HIV OR AIDs.  Since then a secondary market has been developed that allows for the trading of life insurance policies

What LIfe Settlements Can Do For An Investment Portfolio

What if Registered Investment Advisers (RIA's) could answer the question of What Should They Do In This Current Turbulent Market Condition?  How to avoid the conditions that adversely affect a client's investment portfolio and provide the financial health an accredited investor want's to achieve?

Life Settlement investments offer a financial solution and a non correlated asset that have been predominately purchased by institutional investors and has recently become available to RIA's as an investment choice that they can take to the bank.

As we know a financial investment whether it be a stock investment or any other financial investment of any type, has to have the element of a decent rate of return to put back into the investment funds that RIA's manage.

The investment market offers many challenges for investment asset management, with so many investment companies, investment securities, investment services, and other financial services.

Most markets are affected by fluctuations and economic factors that cause both a lack of stability and volatility (you don't know precisely when a trend is going to change), which can cause unknown results, unknown time factors, and potentially, unforeseen tax consequences.

Clients calling with concerns regarding market conditions, may be keeping independent RIA's awake at night thinking about ways to stabilize a client's portfolio and provide that portfolio health RIA's are looking to attain.

RIA's need to be able to provide clients with a stable asset that has, a clear expectation of payment, a fixed maturity date, and a healthy amount of profit.

Fortunately for registered investment advisers there is Wall Street's newest asset class. This new investment vehicle provides a way to reduce the volatility of a portfolio while maintaining a healthy rate of return.

Life Settlement Investing is becoming better known as a viable well performing investment asset and RIA's are also acquiring knowledge on how this investment asset can serve the investment fund growth for their clients.

Wall Street's newest asset class is called Life Settlements, and they are similar to zero coupon instruments, but with the potential to generate higher returns over a shorter period of time than comparable fixed income investments.

Historically investments in life settlements have produced double digit returns.  Life Settlements have the added benefit of being completely uncorrelated to either interest rates or the stock market, and can thus reduce volatility in a client's portfolios.

Life Settlements have become a contender for investment fund allocation and is steadily gaining favorable review by RIA's as RIA's do the work of rebalancing their client's portfolios and allocation of investment dollars to a safe haven.

SEE PRESENTATION