A Meaningful Investment: Life Settlements
The life settlement asset class provides investors a way to make a positive, tangible impact on society. Here, we explain how life settlement investments positively impact senior citizens by providing needed liquidity using real-world examples.
TRANSCRIPT
RESPONSIBLE INVESTING: MORE THAN A PHILOSOPHY.
Richard Beleutz. Founder and Chief Executive Officer.
Richard Beleutz: For us, responsible investing is more than a philosophy. It is and always has been an essential part of our history and our future. We know firsthand that life settlement investing provides a meaningful way to make a difference. A life settlement transaction begins when a policyholder, typically a senior, decides their coverage no longer suits their needs. We find most individuals sell to improve their lifestyle, generate retirement income, cover medical costs, or just reduce everyday expenses.
Taylor Colby Garvey. Director of Marketing.
Taylor Colby Garvey: Today, about one trillion dollars of life insurance is either lapsed or surrendered each year. Policyholders don't know another option exists. A life insurance policy can get them seven to eight times the cash surrender value of a policy, which is often pennies on the dollar. Let's look at some real-world examples!
At 68, Elizabeth had a convertible term policy with expensive premiums and was battling lung cancer. She was able to sell her policy for $490,000, giving her the money to pay for quality health care and enjoy time with family.
At 59, Arthur was forced to file for bankruptcy. He had a 1-million-dollar term policy. On the advice of his financial advisor, Arthur sold $750,000 of his policy and retained $250,000 of term coverage. The total gross of about $300,000, plus reimbursement for the first quarter's premium helped alleviate his economic hardship.
Richard Beleutz: Life settlements help alleviate economic stress on our senior population. Our focus is mainly on small-face policies, which tend to be held by seniors in the greatest need of financial liquidity. Our investors can pursue life settlement investing as a way to both positively impact people's lives and access returns that have historically been non-correlated and predictable. If you're interested in learning more about how we incorporate ESG considerations into our investment process, please visit our website.
Disclaimers
This video presentation (the “Presentation”) does not constitute an offer to sell, or a solicitation of any offer to buy or subscribe for, an interest in any security, product, service, or fund. Do not make any investments unless you first discuss the same with your independent investment professionals. Past performance is not indicative of future performance. This Presentation is for Accredited investors, Qualified Clients, and/or qualified Purchasers (as such terms are defined under U.S. securities laws) only and is for informational purposes about our advisory business. An offer to sell securities as may be implied will only be made if and when, and to those persons whom, we determine an offer may be made in compliance with federal and state securities laws and any other applicable laws and regulations. The distribution of the Presentation may be restricted in certain jurisdictions; offers can only be made where lawful under, and in compliance with, applicable law.