Rich Beleutz, Chief Executive Officer and Steve Luongo, Chief Investment Officer, AIR Asset Management discuss life settlement investing.
Life settlement investing has been garnering more attention in the past few years, from both individual and institutional investors. A life settlement is a financial transaction where a life insurance policy is sold on the open market for a value greater than the cash value that the insurance company would pay to repurchase the policy, which is called the policy surrender value, but less than the full policy benefit value.
Essentially, a life settlement is the sale of an existing insurance policy to a third party for a one-time cash payment. Whoever purchases the policy becomes its beneficiary and pays the policy’s premiums, and the owner of the policy receives the death benefit when the insured person dies. This sort of arrangement adds value on both sides of the transaction, because the person who sells the policy generates extra retirement income by cashing out their life insurance asset, and the investor secures a low risk, high return asset.
Life settlements are an attractive option for investors looking for returns uncorrelated with the stock or bond markets. As volatility and interest rates climb in today’s market landscape, investors must seek out strategies for yield and diversification to hedge against these risk factors. Therefore, life settlement investing, which has historically had strong annual returns with low volatility and high stability, is a viable solution to hedge against today’s uncertainty.
To learn more, register and watch: Life Settlement Investing: A sought-after alternative for today’s investor
What you can expect to learn:
- Evolution of life settlements as an investment opportunity
- Overview of the life settlement marketplace and its positive social impact
- Compelling risk/reward profile of investing in life settlements
- Key factors to consider before investing in life settlements, including:
- How to classify them in an asset allocation
- The options available to invest
- What to look for in a fund manager
Air Asset Management is a hedge fund management firm based in Chicago. The firm was founded in 2014, when it launched its first feeder fund into Carlisle Management Company’s Long-Term Growth Fund. Since then, the firm has provided investors with access to attractive, risk-adjusted returns that are uncorrelated to traditional asset classes and equity markets. Air Asset Management manages over $500 million in assets and offers 13 unique investment strategies to qualified investors.