Considerations

Investing in life settlements can provide exceptional returns without the enormous risk. This type of investment is different from most other financial vehicles. Unlike stocks, bonds and interest rates where fluctuations are expected, the key factor in life settlements is time and not economic conditions. If you are considering investing in life settlements it’s important you are investing with the right company. A successful company should have a sound track record of obtaining high margins for their cliental; this means investing in sound policies.

When evaluating life settlement investment companies consider the following:

• Does the company have a good track record of effectively determining the value of a policy based upon medical records and life expectancy reports?
• Can the company provide information based upon recent investments and past investments?
• Does the company have a track record of making attractive returns on their money?
• What was the origination process for the life settlements and underlying policies that are backing the security?
• Has there been sufficient due diligence to ensure that the policies were originated legally?
• What is the track record of the life settlement provider originating the life settlements? What actuarial and underwriting skills does the provider possess?
• What are the ratings of the insurance companies that sold the policies contained within the securitization?
• Are there outstanding loan balances on the policies that may represent an unexpected source of future costs for investors?
• Does the level of commissions paid to the brokers and life settlement providers involved in a securitization leave sufficient funds from the proceeds of the life settlements to provide an equitable distribution to the insured?
• What actuarial and underwriting skills does the issuer possess?
• Does the life settlement securitization include a large enough number of life settlements to be statistically reliable with respect to longevity assumptions? Do the actuarial assumptions used allow for a margin of error?
• Is the portfolio insured for guaranteed payment?

To get all the details on Merlin Capital Group Inc., and the investment opportunities offered by life settlements, contact us today.