We are a highly specialized team of insurance and finance professionals with more than two decades of experience helping clients acquire, manage, and sell life settlement assets. Our core services include:
· Policy Acquisition
· Premium Optimization
· Policy Analysis and Valuation
Navigating the life settlement market can be difficult. The goal should be simple: Achieve risk-adjusted returns not correlated to the financial markets. Getting to the goal can be anything but simple. The marketplace is fragmented and filled with various intermediaries, vendors, counterparties, service providers and others none of which can be completely aligned with your interests.
Every successful financial strategy starts with an excellent client relationship. Our mission and values include exceeding our client’s every expectation. Call us today to find out how we can help you make a successful entry into the life settlement asset class or enhance your existing life settlement operation.
Founded in 1998, Senior Settlements was one of the first companies to introduce Life Settlements to the Capital Markets. Senior Settlements engaged Bear Stearns in 1999 to render financial advisory and investment banking services in connection with the issuance of securities collateralized by life insurance policies. In 2000, Senior Settlements closed one of the very first credit facilities for the acquisition of life settlements with Dresdner Bank in the amount of $100 million.
Since the inception of Senior Settlements in 1998, the secondary market for life insurance has created a tremendous opportunity for the selling of unneeded or unwanted life insurance policies for fair value. Just as the industry has experienced explosive growth, so too has Senior Settlements. In conjunction with its expanded business model, Senior Settlements has also formed relationships with numerous third parties to meet the strict demands of our clients. The Company has retained some of the best legal advisors, actuarial and accounting firms, and institutional trustees to assist in tax, audit, regulatory, licensing, financial modeling, and overall deal structure.
The original mission statement remains the same today: “We endeavor to foster an environment of respect, challenge and reward for all of our employees; exceed the expectations of the individuals and companies with whom we are privileged to work with, and maximize value to our investors.”
In 1911, the United States Supreme Court ruled in Grigsby vs. Russell that insurance policies are legally viewed as financial assets which may be sold to a third party at the owner’s discretion. This court case is the foundation for the large and growing secondary market for life insurance in which policy owners can receive fair market value for their policies rather than accepting the usually lower cash surrender value offered by the issuing insurance company.
A life settlement is the sale of an existing life insurance policy for more than its cash surrender value to a third-party purchaser for a lump sum payment. The purchaser buys the policy at a discount to its face value and typically holds it until maturity (death of insured) at which time the investor receives the death benefit payable under the policy from the issuing insurance company.
The amount paid in a life settlement is based primarily on the life expectancy of the person insured, the face amount of the insurance policy, and its ongoing premium requirements. From the original owner’s standpoint, a life settlement typically is a more lucrative alternative to letting the life insurance policy lapse or surrendering it to the issuing insurance company, essentially turning a non-productive asset into a productive asset.
A life settlement offers an excellent way to diversify any portfolio and serves as a great defensive strategy because the return is not dependent upon on or affected by a soft economy, stock market volatility, interest rate fluctuations, unexpected global events, or other traditional economic factors.
Life Settlements provide for the opportunity to earn attractive yields, particularly in today's low interest rate environment.
Portfolio and policies originated by Senior Settlements are issued by highly rated life insurance companies. Some of these life insurance companies have been in existence for over 100 years and represent some of the strongest companies in the world.
The return on a life settlement is contingent upon the maturity of each life insurance policy. The return is a function of the death benefit collected minus the cost to acquire the policy, premiums and fees paid to maintain the policy.
With the exception of when the policy will mature, all other variables can be reasonably estimated for projections to be made in advance to illustrate projected returns at various points in time. This sensitivity analysis provides a range of likely outcomes that can help purchasers quantify their decision-making process.
The use of independent third parties to provide life expectancy underwriting provides the estimate of when the policy will reasonably mature. Senior Settlements employs stringent policy standards and utilizes highly recognized service providers.
Contact Senior Settlements today to discuss how we can help you make a successful entry into the life settlement asset class or enhance your existing life settlement operation.
A Mid-Atlantic Financial Company
THIS WEBSITE IS NEITHER AN OFFER NOR A SOLICITATION OF AN OFFER TO PURCHASE ANY SECURITIES OR MAKE ANY INVESTMENTS. THIS OPPORTUNITY IS OPEN ONLY TO ACCREDITED INVESTORS OR QUALIFIED INSTITUTIONAL BUYERS.