We invest in unique opportunities that seek to provide attractive total returns while preserving capital for our investors. Our strategies aim to deliver risk-adjusted returns with lower volatility than the returns of traditional asset classes.
AIR Asset Management currently has several products open for investment. Please get in touch with us for more information at info@airassetmanagement.com.
There may come a point in time when a life-insured individual no longer wants or needs their life insurance policy. Sometimes, he or she simply can’t afford it. Often, the insured individual will surrender their policy or allow it to lapse without realizing any benefit. In contrast, a life settlement allows a life-insured individual to transfer ownership and beneficiary rights of their policy in exchange for cash.
To learn more about why life settlements — the once obscure and hard-to-access asset class — are now a popular way for RIAs and Institutional investors to gain greater risk-adjusted returns and portfolio diversification. The infographic explores the asset class’s history, defining traits, and the compelling investment case.
Investors in a life settlement may profit from the difference between the face value of the policy less the acquisition price and accumulated premiums.
As measured by standard deviation of returns, the volatility of life settlements tends to be low in relation to other asset classes.
Historically, returns from life settlements have displayed a relatively low correlation to returns from more traditional asset classes, such as equities and fixed income investments.
We have observed an increase in institutional investment in life settlements, resulting in improved liquidity and standardization in valuation.
Allocating to Life Settlements
Understanding where life settlements fit into an overall portfolio allocation can help advisors and their client better understand the unique and compelling characteristics of these assets.
