Who Invests in Life Settlements?
Investors in life settlements are institutional investors of all types, including commercial and investment banks, hedge funds, close-ended and open-ended investment funds, pension funds, endowments, family offices, and private equity funds. Institutional investors are interested in life settlements as an asset class due to the attractive risk-adjusted investment returns and lack of correlation to traditional investments. Furthermore, the credit risk for a life settlement is minimal, considering that a highly rated insurance company is the ultimate creditor for the final payout.
