Financing of US Life Settlements
An Asset Class with Enormous Market Potential
The secondary market for US Life Settlements is the principal market worldwide. With a global premium share of 22%, the US is the world’s largest market for Life Settlements, half of which is terminated prematurely. Mainly older US citizens terminate their risk life insurance policies prematurely and sell them profitably to companies specialized in the purchase, so-called providers. From these, investors acquire individual policies and, taking into account a cautious consideration of the risk over the term of the policy, receive their profits upon payment of the sum insured. The independence of this asset class from the stock and capital markets is an important and positive investment criteria.
Successfully Financing with Our Experience
North Channel Bank is one of the few financial institutions in the world to finance investments in US Life Settlements. We adjust the financing individually to the term and structure of the investment. It may cover the acquisition of portfolios, the payment of recurring premiums, a leverage or the repayment of existing loan liabilities.
Based on our many years of experience, we have developed methods to ensure the legal certainty of such investments. These include improved auditing mechanisms, licensed and protected models, intensive investor training, and explanation of standards, pooling and hedging techniques to contain and reduce risks.
A Market with Many Options and Advantages:
- High Interest Rate:
Due to the current low interest rates, investments in high-yield asset classes such as US Life Settlements are interesting investment alternatives.
The lacking correlation between this asset class and the equity and capital markets is an important, positive investment criteria.
- An Established Market:
For more than 100 years life insurance policies have been legally sold in the US as tradable assets. Already at the time of conclusion of the contract, the possibility of selling in the secondary market is taken into account.
We offer various products to finance investments in life insurance policies or their premiums. In cooperation with our affiliate, NorthStar Life Settlements Trading, LLC, Irvine, California, and the US servicer NorthStar Life Services, LLC, we cover a broad range of services in this sector.