8/28/2026 2:07 AM (PST)

Life settlement investment funds give investors exposure to portfolios of existing life insurance policies. The fund typically acquires qualifying policies, manages required premium payments, and receives the death benefits when policies mature. Investors may consider this asset class because its potential returns are primarily influenced by actuarial factors and insured longevity rather than daily movements in public markets. Holding multiple policies may also provide diversification within the investment. However, life settlement funds can involve long and uncertain holding periods, ongoing premium expenses, limited liquidity, underwriting risk, and management fees. Investors should carefully review the fund structure, policy selection process, projected cash flows, fees, risk disclosures, and manager experience before committing capital. The suitability of a life settlement fund depends on an investor's objectives, risk tolerance, liquidity needs, and investment horizon.