Life settlements as an investment opportunity

Life settlements offer a new and exciting investment option. Life settlements are investments in the life insurance policies of US citizens, and returns correspond to developments in the life expectancy of the insured. Professional investors use life settlements to diversify the risk of their investment portfolio.

Life-Investor.EU provides comprehensive information about life settlements. This website  explains the themes from the perspective of investors from the European Union. Life-Investor.EU is a project of Psilo Vouno Management, an independent advisor to professional investors who are considering investments in life settlements.

Interesting

For many investors, life settlements offer an interesting complement to the existing portfolio for a number of reasons, including:

• Little or no correlation with the prices of shares, commodities and other economic indicators;
• Stable and high expected returns between approximately 8% and 12%;
• Manageable risks at sufficient size and adequate management.

Apart from highlighting the advantages of investments in life settlements, this website also emphasizes many of the risks, the importance of spreading investments over a portfolio of policies and considerations about what adequate management should include.

Three critical success factors

There is a growing supply of various life settlement products for European investors. This is a very welcome development, since more options means choice and the possibility to compare. The first evaluation of a life settlement product should be focused on:

• the spread in the life settlement portfolio (preferably 100+ lives)
• the financing of premiums
• the quality of due diligence at acquiring policies

These are the three critical success factors of any life settlement product, but there is more to know.

What you need to know about life settlements

Investments in life settlements are being offered in many variances. There are the mutual funds, the portfolio linked bonds or notes, and investment banks have started developing structured products and synthetic portfolios. All these life settlement products may have very different risk/return profiles, however one thing is clear: life settlements require a long term commitment. It is not a liquid investment product and the market is still young and developing. High yield for many years ? Maybe yes, but one should carefully examine risks and risk management procedures.

You should consider life settlements essentially as investments with a (very) high risk. Two separate articles about major risks are downloadable from this website: the “Achilles heel” and the “Premium phantom”. We believe that for fund managers, managers of pension funds and both professional and private investors, an understanding of the issues described is essential for proper decision making.

When it comes to evaluating or analyzing your life settlement investment proposal we strongly recommend you to do your due diligence both on the proposer and the life settlement product. Although Psilo Vouno mainly operates in the Benelux, you can contact us for more information or we can help you find a suitable consultant who can assist you. (See contact details).

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More about life settlements

If you are considering setting up a mutual fund, investing in a portfolio or are discussing options with an investment bank, please consider multiple options. We will be very pleased to give you advice on such matters, further more we have a network that can supply new investment options that you may not have considered yet.

This website however, is a good first starting point to consider important topics like how to purchase policies (and perform due diligence), life expectancies, premium management, tax implications, structuring and offering of the product up to valuation issues and performance measurement.

Do not forget however that serious investments require serious investigation. Please consider asking for our independent advice (European investors only). You can contact us at +31 - 624 486 892.

Important Notice

Before using this website for your information about life settlements and related issues, you are required to carefully read and agree to the Terms of Use as  specified  in the chapter disclaimer.

This website is developed for European investors who consider life settlements and is provided for information purposes. Care has been taken and the facts represented have been checked wherever possible and verified by using several sources. Nevertheless some of the information may contain errors or omissions, it may not always be complete and it may be outdated by new insights and developments. We cannot accept any liability and you are strongly advised to always check with a professional advisor before you make any investment decision.

This website is not developed to inform sellers of policies and it is not developed for American investors. We strongly advise American investors and/or sellers of life settlements to use local sources of information and local advisors. Tax and regulatory issues differ considerably among countries and therefore many parts of this website are of no use for people outside of the European Union.

Please read our Terms of Use / Disclaimer carefully.