There are many life settlement options out there that tout their funds pay current income have redemption windows and best-guess valuations. These bells and whistles serve no purpose other than to create the illusion that a quarterly management fee is justified. We simply don’t believe that it is. We don't get paid until you do.

To extract all the value from a life settlement contract, policy selection, underwriting, and a system to manage premium reserves to combat extended longevity risk renders far more value than trading policies in the tertiary market to generate alpha and call it a coupon. The real value is in maximizing the discount to face and understanding exactly what you’re buying as thoroughly and transparently as possible.

Speculation, credit quality, research, manager performance, track record and other metrics that investors weigh to buy stocks, bonds, and real estate do not apply here.  A life settlement alternative investment is a Time-to-Maturity play, period.

As an investment, the face value of the contract is stated on the policy.  The Spread or Yield-to-Maturity (YTM) is the investor’s discounted acquisition cost against the face amount.  Unlike a stock or a home where the value is only known when and in what market you choose to sell it, a life settlement’s value is known the day you buy it.

Life settlements are perhaps the last true buy-and-hold investment left.  It is a passive investment that avoids market and geopolitical risks because it’s a contract.  There are no moving parts. The mechanical differentiation of a life insurance asset-backed security versus volatile asset classes is what creates the diversification and non-correlation away from traded markets.