What size policies does LSF want to acquire for its own portfolio?
Currently, LSF prefers to buy individual life insurance policies that have death benefits ranging between $100,000 and $500,000. Our institutional affiliates fund at escrow all policies in excess of $500,000 and hold them in their portfolios. By committing our capital to smaller policies, we are able to buy more policies and thereby spread our actuarial risks over a larger pool of policies. In addition, and very importantly, we offer the benefits of life settlements to the owners of policies with death benefits that are lower than the vast majority of other life settlement providers and brokers are interested in acquiring.
