What Drives Investors?

Life insurance settlements have now become a mainstream industry with very little negative publicity attached to it. Sheer numbers drive the investors -- they do an actuarial analysis of each prospective insured, determining whether it would pay off to purchase a policy given the person's state of health, age, etc. Additionally, most investors in life insurance settlements have such a large actuarial base of policies that when a particular person lives an extraordinarily long time, the investors can, on the average, do well with their portfolio of life insurance policies because other insureds will pass on earlier than expected. From the investor's point of view, it is merely an actuarial exercise that usually pays off for them. From the insured's point of view, he will benefit by taking advantage of the intrinsic value of a policy and getting a return for all the years they have been paying the premiums. They have instant access to cash, which usually far exceeds the policy's cash ...  more