Who buys life settlements?
Historically the principal buyers of life settlements were syndicates of wealthy individuals. More recently, institutional investors have entered the market for life settlements because the returns are not correlated with the stock and bond market. There are some investors dedicated solely to ownership of life settlements due to the double-digit returns they offer. And because the institutional investors are able to own a large portfolio of policies they have less risk to each single policy and are therefore willing to pay higher prices than individual investors.
