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Welcome to Life Settlement Portfolios! A Life Settlement Portfolio is created in the secondary market for life insurance known generally as life settlements. In most cases a Life Settlement Broker facilitates the sale of life settlements between sellers and purchasers, but does not take possession or control of the policies. The policies may then be pooled into a portfolio depending on their parameters.
The purchasers of these policies are commonly referred to as a Life Settlement Funder or Provider. They acquire the life insurance policies at a discount to their face value for investment purposes. Portfolios have also been utilized to hedge or leverage other investment models.
Life settlement transactions involve the sale of a current life insurance policy to third party. When the policy is sold, the policyholder receives an immediate cash payment (settlement) to use as he or she wishes. The purchaser takes an ownership interest in the policy at an agreed upon settlement amount and receives the death benefit under the policy when the insured passes.
Not all policies that are purchased in the secondary market are packaged in portfolios, but in most cases investors are trying to fill a pool of money matching a criteria they have developed to fit their investment and ROI goals.
We are also awaiting a article about how most portfolios are structured that will be released from the Life Settlement Magazine.