Life Settlement Valuation
Most life settlement investors value a life insurance policy by obtaining an LE from an LE provider and backing out the survival curve from the Society of Actuaries (SOA) 2015 VBT Table. They then use this survival curve to determine yearly expected cash outflows(premiums and maintenance expenses) and cash inflows (death benefit proceeds). These cashflows are then discounted at the desired gross yield the investor wants to earn (13% to 18%) to derive a purchase price for the policy.
At Colva, we accurately value your investment on both a policy and portfolio level.
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