The secondary market for US life insurance policies deals with policies being sold by wealthy individuals of an advanced age that were purchased for the purpose of hedging risk rather than saving for retirement. In these cases, selling the policy to a third party is more lucrative than surrendering it to the insurance carrier. By carefully managing the risks over the lifetime of the policy, investors earn a return at disbursement of the policy.
Thanks to its long-term experience in this market segment, North Channel Bank has developed methodologies to ensure the legitimacy of such investments. These include improved due diligence and review mechanisms, licensed and proprietary models, rigorous investor training and standards, and the use of pooling and hedging techniques to reduce risk.
A Market with many Opportunities and Benefits:
High rates of return:
With interest rates low, investments in high-interest asset classes such as US life settlements make interesting investment alternatives.High rates of return:
Its low correlation to the stock and capital markets makes this asset class a positive alternative investment.Security:
An established market:
Life insurance policies have played a significant role in hedging risks in America for more than 100 years. The option of selling the policy on the secondary market is already taken into account at the time of policy inception.An established market:
Under current German tax law (status 01/2015), special purpose vehicles that invest in US life insurance policies are classified as asset management and not as trade. The resulting commercial tax savings make life settlements an attractive product.Tax benefit: