New Jersey resident Bill Schantz is CEO and owner of Senior Settlements, LLC and credited with introducing life settlements into the capital markets more than two decades ago. Schantz has always believed that life settlements was a socially responsible investment that benefited both the seller of the policy and the buyer.
Also known as socially conscious, “green”, or ethical investing…Life Settlements are an investment strategy that seeks to consider both financial return for the buyer and social & environmental good for the seller of the policy.
While the asset class yields superior risk-adjusted returns, the market itself developed out of necessity.
According to the Society of Actuaries, approximately one trillion of face amount of life insurance is either lapsed or surrendered each year. Life settlements offer an alternative to surrendering a policy for nothing in return.
Insurance policy holders find numerous benefits by selling…using the cash to improve lifestyle, supplement retirement income, cover additional care & medical costs or simply to reduce their expenses.
Generally, the policy seller receives 100–400% more cash in a Life Settlement offer than the cash surrender value offered by the insurance company. Many then use that cash to supplement retirement income or help pay for end-of-life and long-term care.
For investors, the advantage is clear. The purchase of a life settlement allows one to buy a future receivable at a significant discount, with little-to-no concern for market volatility as it relates to their investment
Investors in life settlements find stability as payouts of life settlement transactions are not impacted by the stock market, interest rate fluctuations, variations in the economy, or foreign instability. Total returns are fixed at the time of investment.
Life settlements offer the proverbial win/win for all parties in the transaction.