Investments in US Life Settlements
Attractive, Largely Capital Market-Independent Alternative Investment
How Does Trading of US Life Settlements Work?
In US Life Settlements, you invest either through direct purchase from a licensed Life Settlement provider – who holds a license to purchase directly from the policyholders –, or through the so-called Tertiary Market, i.e. from market participants who already have policies in their portfolios. Subsequent to the acquisition, the investor assumes all rights and obligations to the contract, makes the payments of premiums and, in the event of death of the insured person, he receives the sum insured.
Invest in an Established and Professionally Regulated Asset Class
The US secondary market for Life Settlements has offered a lucrative alternative for more than 100 years. Since the 1990s, a significant market has been established. However, market growth slowed down starting in 2009 due to poor life expectancy reports and the resulting losses for the investors. In addition, the financial crisis of 2007/2008 also had a lasting impact on investor confidence. At this turning point, policy buyers as well as politicians have reacted. The secondary market was subject to regulation, control mechanisms were introduced. In the meantime, underwriters and policy prodviders in most states have become subject to comprehensive rules and must acquire licenses to be approved. This has created the basis for fair pricing and more transparency in the purchasing process.
Your Investment Alternatives in US Life Settlements with North Channel Bank
- US Life Settlement Investments in Loans Issued by North Channel Bank:
You have the opportunity to invest in our loans issued to long-term customers.
You can invest in parts of our portfolio loans that have been issued to US Life Settlement investors. Characteristic of this type of loan is its conservative loan-to-value ratio (LTV). Debtors are US monoliners with investment grade ratings.
- Co-Investments in US Life Settlements with North Channel Bank
We offer investors the opportunity to participate as syndication partners in our financing instruments within the US Life Settlement segment whilst managing these loans for you.
You can also invest in US Life Settlements simultaneously with us. We manage the loan commitments for you and remain invested proportionately parallel with you throughout the term of the loan.
- Independent Direct Investments in US Life Settlements
By investing in US Life Settlements, you are investing in an asset class that is independent of the capital market. With our servicing affiliate, you have a renowned partner at your side.
If you are interested in investing in US Life Settlements, we – in collaboration with our servicer, NorthStar Life Services – can help you with the sourcing of policies and create a portfolio tailored to your needs.
A Market That Offers Many Options and Advantages:
High Interest Rate:
Due to the current low level of 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.
A Well 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.