8/30/2026 9:50 PM (PST)

Life insurance as an investment can take several forms. Certain permanent life insurance policies can accumulate cash value, while existing policies can also become investment assets through the life settlement market. In a life settlement, an investor acquires an existing life insurance policy, assumes the required premium obligations, and may receive the death benefit when the insured passes away. The potential return depends on the policy's acquisition cost, premiums, death benefit, and the insured's actual longevity. Life settlements may provide an alternative source of portfolio diversification because their outcomes are primarily influenced by actuarial factors rather than daily market movements. Investors should carefully evaluate the risks, holding period, liquidity, and policy economics before investing.