Earn passive income from a high-yield asset immune to market swings

Life settlements are uncorrelated to traditional markets and can offer double-digit returns, often in the range of 8% to 14% IRR—depending on longevity risk, policy structure, and premium outlays.

Life settlement investments are illiquid and long-term in nature. Holding periods vary, but most investors see payouts within 3 to 10 years, depending on the insured’s life expectancy.

The largest risk is longevity risk—if the insured lives longer than expected, your return declines. There’s also regulatory risk, premium cost increases, and carrier credit risk. Mitigation requires sound underwriting and active management.

Licensed medical underwriters assess the insured’s health records and history to produce a life expectancy report. Most investors rely on multiple LE providers to triangulate a more reliable projection.

Absolutely—and you should. Just like a stock portfolio, diversification helps reduce concentration risk. A well-balanced portfolio spreads exposure across ages, health conditions, policy sizes, and insurance carriers.

Not directly. Life settlements are largely uncorrelated to the stock market, interest rate shifts, or geopolitical noise. They’re driven by mortality tables and insurance contract law—making them attractive during economic uncertainty.

Professional servicing companies are retained to handle premium payments, carrier correspondence, and death benefit collection. Investors are typically updated regularly through reporting dashboards or fund managers.

Yes, life settlements are regulated at the state level, with oversight from insurance departments. Approximately 43 states have legislation in place to protect both policy sellers and investors. Reputable providers operate within these frameworks.

Life settlement gains are typically taxed as ordinary income, not capital gains. However, tax treatment can vary depending on fund structure and investor domicile. Always consult a qualified tax advisor.