Life Settlements Overview
Life settlements offer potential investors the opportunity to earn great returns in an asset class that is uncorrelated with current economic markets. In order to do this, however, investors need to have two key skill sets:
- An understanding of the insured’s mortality curve and expected survival-based cash flows.
- An actuarial understanding of how insurance policies are priced and how to minimize insurance premium payments by utilizing key policy characteristics.
While life settlements can offer great returns, most life settlement funds are weighed down by poor practices, misaligned incentives, and excessive commissions.
Colva helps investors overcome these obstacles by providing actuarial and insurance knowledge that many funds lack. This expertise enables our clients to maximize the actual returns they earn while minimizing their downside risk.
At Colva we draw upon our vast actuarial experience in valuing, investing, and managing the risks for one of the largest life settlement portfolios in the world as well as pricing and designing insurance policies for one of the largest insurance companies in the world. This experience allows us to provide a number of services to life settlement investors that novice investors often neglect .
Individual Policy Pricing
Investors often are tasked with pricing hundreds of millions of policies each month just to find a few that are attractive investments. Without the time or actuarial expertise to do this properly, investors run the risk of missing on great opportunities—or even worse investing in poor ones due to lack of expertise. At Colva we handle all of this directly. Read more…
Investors managing portfolios of life settlement policies often need third party valuation for auditing or exit strategy purposes. Colva utilizes risk-adjusted protocols to value life settlement portfolios for investors Read more…
Many life insurance policies have unique features that can’t be minimized through simple pricing techniques. Are you paying more in premiums than necessary? Read more Read more…
Click here to go to Colva’s complete life settlement article/video archive.