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Oct 4, 2022

Life Settlements Primer: A Premier Uncorrelated Asset Class

Life Settlements Primer: A Premier Uncorrelated Asset Class


Life settlements are an uncorrelated alternative investment with low volatility and predictable returns.


Life settlements offer investors a chance to earn stable, predictable returns through the purchase of life insurance policies from seniors. This alternative investment is appealing because it isn’t tied to the ups and downs of traditional financial markets, relying instead on the actuarial predictions of policyholders' life expectancies. This provides a non-correlated return stream, making life settlements an attractive option for those seeking diversification.


Investors considering life settlements should be aware of their long-term nature and the challenges associated with predicting life expectancies accurately. Despite these considerations, the market is substantial, with estimated values potentially reaching up to $267 billion over the next decade. As such, life settlements remain a compelling choice for those looking to diversify their portfolios and secure returns independent of broader market movements.


Access the entire article to discover why life settlements offer investors a superior choice for uncorrelated alternative investments.



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Table of Contents

  • History of Life Settlements

  • Why Should an Investor Invest in Life Settlements? Pros and Cons

  • Market Size: “The Market is Large”

  • Life Settlements Funds List

  • Returns of Investments

  • Types of Life Settlements

    • Types of Life Settlements

    • Transactions of Life Settlements

  • Fund Structures

  • Types of Players

    • Sell-Side

    • Buy-Side

  • Example of Life Settlements




Thanks to our Contributor

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RiverRock Funds is a dedicated life settlements investment manager with over ten years of experience managing pooled investment funds investing in the secondary and tertiary markets for life insurance policies.

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This article (the “Article”) is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any investment or any securities. This Article does not constitute investment advice and is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. Readers should make their own investigations and evaluations of the information contained herein. The information contained herein does not take into account the particular investment objectives or financial circumstances of any specific person or entity who may receive it. Each reader should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained herein.  Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation. Certain information contained in this Article constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,”  “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. Readers should not rely on these forward-looking statements.  Certain information reflects subjective determinations which may prove to be incorrect. There can be no assurance that the estimates or projections will be accurate or that historical trends will continue. In considering the prior performance information contained herein, readers should bear in mind past performance is not necessarily indicative of future results. All rights reserved. The material may not be reproduced or distributed, in whole or in part, without the prior written permission of PrimeAlpha LLC.

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