8/24/2026 9:59 PM (PST)

A life settlement investment involves acquiring an existing life insurance policy at a price generally above its cash surrender value but below its death benefit. The investor assumes responsibility for required future premiums and receives the death benefit when the insured passes away. The investment's potential return is influenced by several factors, including the policy purchase price, premium costs, death benefit, and the insured's actual longevity compared with the life expectancy estimate used during underwriting. One distinctive characteristic of life settlements is that their return is primarily driven by actuarial and mortality outcomes rather than daily movements in stocks or other public markets. This can make them an interesting consideration for investors seeking diversification through alternative assets. However, life settlements can involve long and uncertain holding periods, ongoing premium obligations, limited liquidity, and underwriting risk. Investors should carefully review the policy characteristics, projected cash flows, fees, investment structure, and risk disclosures before committing capital.