Life Settlement Investing
Institutional investment exposure to longevity-linked assets through actively managed life insurance portfolios.
AIR Asset Management has over a decade of experience sourcing, acquiring, and managing life settlement investments. The strategy seeks to provide differentiated return potential with historically low correlation to traditional asset classes through portfolios of life insurance policies.
There can be no assurance that the strategy will achieve its investment objectives or that historical market characteristics, including correlation observations, will continue in the future.
What are Life Settlements?
A life settlement is the sale of an existing life insurance policy to a third-party investor for a value greater than the policy’s surrender value, but less than the policy’s death benefit.
For many policyholders, life settlements may provide access to liquidity from an otherwise underutilized financial asset. Investors, in turn, may gain exposure to a differentiated alternative asset class whose return drivers are tied primarily to longevity and mortality dynamics rather than traditional market movements.
The life settlement market has continued to mature as institutional participation, regulatory oversight, and market transparency have expanded over time.
Recent industry data released by the Life Insurance Settlement Association (LISA) showed that policyholders who sold their life insurance policies through LISA members in 2025 received nearly 9x more than the cash surrender value offered by insurers. According to the report, the average policyholder received approximately $212,066 through a life settlement transaction, compared to approximately $24,360 through surrendering a policy back to an insurance carrier.
LISA also reported that its members paid approximately $626.6 million to consumers in 2025 for policies they no longer needed, with nearly $3.6 billion returned to policyholders over the past five years.
These statistics reflect industry-wide activity reported by participating LISA members and do not represent the performance of AIR Asset Management strategies, accounts, or investment vehicles.
Why Investors Consider Life Settlements
Historically low correlation to traditional markets
Longevity-linked return drivers
Potential portfolio diversification benefits
Exposure to a specialized and institutionally developing market
Long-duration alternative investment characteristics
Investors may evaluate life settlements as part of a diversified alternative investment portfolio due to the strategy’s differentiated characteristics, including:
There can be no assurance that the strategy will achieve its investment objectives or that historical market characteristics, including correlation observations, will continue in the future.
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Learn More About AIR’s Life Settlement Platform
AIR works with qualified investors,* RIAs, family offices, institutions, and consultants seeking differentiated alternative investment opportunities.
Contact our team to learn more about AIR’s life settlement investment capabilities.
*Eligibility and suitability are determined on a case-by-case basis pursuant to applicable offering documents and regulations.
Disclaimers
For informational purposes only. Not an offer to sell or solicitation to buy securities. Investments involve risk, including possible loss of principal. Past performance is not indicative of future results. Alternative investments are speculative, illiquid, and may not be suitable for all investors.
Life settlements are complex and speculative investments that involve substantial risk, including the possible loss of principal. Investment returns are dependent upon numerous factors, including life expectancy estimates, premium obligations, mortality experience, policy performance, and market conditions. Actual results may differ materially from projections or expectations.
Past performance is not indicative of future results. Historical market characteristics, including correlation and volatility observations, may not continue in the future.
This material is provided for informational purposes only and does not constitute investment advice or an offer to sell or a solicitation of an offer to buy any security. Any offer or solicitation may be made only pursuant to definitive offering documents and applicable securities laws.
Certain information contained herein may include industry data, market estimates, and third-party information believed to be reliable; however, AIR Asset Management does not guarantee the accuracy or completeness of such information.
Data Sources:
Source: Life Insurance Settlement Association (“LISA”), 2025 Market Data. Statistics reflect transactions completed by participating LISA members and may not be representative of all life settlement transactions or future market activity.