Secondary market life insurance policies assembled in a portfolio constitute a unique investment opportunity.  Each policy can be considered a building block to create a structure that uniquely matches an investor’s needs.  How these policies are aggregated can mean the difference between optimum returns and dismal performance.  The history of early life settlement pools is littered with naïve assumptions leading to exaggerated expectations and bitter disappointment.  Much of the blame for these failures rests with a lack of understanding regarding the product’s limitations but the preponderance of shortfall derives from bad design. 

The premise seemed simple enough.  Collect a pool of policies and syndicate the death benefit into units or shares.  Then pay the premiums and wait for the death benefits as disbursements.  The premise faced immediate complications in structuring.  In order to explain the features of a completely new asset class, organizers resorted to using traditional securitization models in illustrations.  These failed to take into account the inherent liquidity and life extension risks as well as reserve cash requirements.  Even the portfolio provisioning time requirements were often underestimated.  The result is the three Ds of disappointment, disillusionment and discouragement. 

Our approach is different.  Like the individual tiles of an artistic mosaic which are carefully selected and arranged to from a total harmonious picture, we match client objectives to policy choices to deliver controlled, sustained capital appreciation with little downside concerns.  We believe the key to success lies in establishing realistic expectations and delivering outcomes that match them.  We invite you to contact us to discuss your particular needs, goals and concerns.  You find we’ll listen, ask questions and listen some more.  Then we’ll jointly determine if this is the correct asset for you.