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Life Settlement technical papers

Life Settlement Premium Optimisation

Created: 12-01-2018 Size: 91Kb Author: Fred Bell

Effective premium optimisation is a key consideration for investors to maximise their returns from a portfolio of Life Settlement policies. When a policy is written, the Insurance Company is not only looking to ensure sufficient premiums are paid to keep the policy in force, but often aim to set premiums at a generous level to cover expenses and profit.

Hence there is significant potential for the over-paying of premiums to the Insurance Company, particularly in the early years of a policy. Read more

Life Settlement Valuation Methods

Created: 17-10-2017 Size: 107Kb Author: Fred Bell

In line with other similarly difficult-to-value financial investments, there are two commonly used methods for producing valuation figures for both assets and liabilities; Mark-to-Market and Mark-to-Model. Historically, both methods have been used in the periodic valuation of a portfolio of Life Settlements.

In general, Mark-to-Market refers to the practice of determining the value of an asset or liability with reference to the most up to date price or value attainable in the marketplace. Read more

Life Settlement Liquidity Management

Created: 08-03-2016 Size: 149Kb Author: Louise Witts

Life Settlements are purchased with an inherent mortality profile and expectation of the future premiums that will be required. Liquidity problems can arise when mortality assumptions are overstated.

This can prove to be a double-edged sword as a delay in receipt of the expected death benefits reduces the cash inflow (which may be assumed to be used for premium commitments) and also increases the outflow (as premium commitments continue longer than expected). Read more

Life Settlement opportunity to grow

Created: 05-04-2014 Size: 103Kb Author: Louise Witts

Like many asset classes, Life Settlements faced challenging times in 2011. But looking forward, SL sees a growing opportunity for investors seeking stable returns.

In the US at the end of 2010 there was a significant victory for the Life Settlement industry in the Kramer Vs. Phoenix case. The New York state Court of Appeals ruled that a person can… Read more