October 21, 2016
Capital Market Uncorrelated Investment in US Life Settlements
The US Life Settlement asset class is a profitable business for investors and policy sellers. It has become more attractive again in recent years. One of the main reasons for this, in addition to new market regulations and improved life expectancy reports, is its non-correlated status from the stock and bond markets.
Special Feature: Longevity Risk
This business poses a special issue that every investor in US Life Settlements should be aware of: The longevity risk. The maturity benefit of the US Life Settlement is clearly defined, but when the insured event occurs, is not known. This special risk in US Life Settlements is assessed by experts with a high level of expertise and is consequently reduced.
Investment in US Life Settlements – Attractive because Uncorrelated to Capital Markets
The US Life Settlements asset class is an interesting business for both the investor and the policy seller. The asset class’s non-correlated status from the stock and capital markets makes investing in US Life Settlements attractive.
Less Ethical Concerns of Investors in the US Life Settlement Secondary Market
The ethical discussion repeatedly arises and has caused problems for the US Life Settlement asset class in the past, but now it has less of an impact on investors, who understand that German insurers also use mortality tables to estimate and predict people’s deaths when calculating premiums and subsequent life insurance payments.
Here you can read the entire guest article in HEDGEWORK’s newsletter.
Download Article, HEDGEWORKNEWS, October 2016 (PDF) in German Only
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