Life Settlement Investing Explained
The Birth of a New Asset Class
What is a Life Settlement?
The transfer of ownership and beneficiary rights of a life insurance policy on an insured in exchange for a cash payment.
The Life Settlement Process
Life Settlements are A Favorable Alternative to Lapsing or Surrendering a Policy
Gaining Recognition as a Mainstream Financial Option
90% of life insurance policies (by face amount) that are terminated are either lapsed or surrendered.(2)
80% of Americans currently fall short of conservative retirement savings targets.(3)
The Case for Life Settlement Investing
The chart above pulls the S&P 500 Index’s ten most recent down months as of 1/31/24 and does not represent the index's all-time return. To view the historical monthly returns for the S&P 500 Index, visit Ycharts: S&P 500 Monthly Return. View the fact sheet for the historical returns of AIR U.S. Life Fund II QP, LP (Class A).
Compelling Market Opportunity
The life settlement industry has grown considerably and gained recognition but is still not fully understood or utilized, offering big opportunities for more growth.
Enhancing Financial Security and Quality of Life
Life Settlement Case Studies
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.
AIR Asset Management’s Longevity-Based Strategy
Want to learn more about AIR Asset Management’s approach to investing in the life settlement market? Request more materials from our team.
SOURCES
1: Life Insurance Settlement Association - 2022 Market Data.
2: American Council of Life Insurers- “Life Insurers, Fact Book”.
3: Milliam USA.
4: Past performance is no guarantee of future results. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise and estimate of future performance. Data as of 12/31/23. Notes: Returns have been calculated using the geometric mean of historical year-end returns over a 5-year period. Volatility calculations are based on the Sample Standard Deviation method. For historical returns specific “AIR Life Settlement Strategy,” please refer to the AIR U.S. Life Fund II QP, LP fact sheet. Additional information and data sources for other mentioned indexes and funds can be found in the Index & Source Guide.
5: 2021 Life Settlements – The Growth Continues | Conning.
6: GITNUX Market data report 2023.
7: Life Insurance Industry per the American Council of Life Insurers Annual Report (2020). American Real Estate Industry per the MSCI – Real Estate Market Size report (2021 / 2022).
8: Total Life Insurance Industry refers to the total face value of individual life insurance policies in force in 2020. Annual Life Settlement Market Opportunity includes policies with an estimated age of policyholders over 65 years old. The current Annual Life Settlement Market refers to the total face value of policies settled in 2021.
DISCLOSURES
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