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About Life Settlements

About Life Settlements

Millions of Americans each year purchase life insurance, for a vast number of reasons based on their personal needs. Seen commonly as an investment instrument for financially safeguarding the well-being of loved ones after a family provider’s death, life insurance can also serve as a financial asset that may deliver value to the policyholder while he or she is still alive.

Like other assets, whether it’s your car, home, or other valuable possessions, life insurance policies have a monetary value, meaning they can be purchased and sold.

A life settlement, simply put, is the sale of a life insurance policy to a third party for less than its expected death benefit, but for more than its surrender value. At maturity, the death benefit proceeds are paid to the investors.

Life settlements are an uncorrelated asset, meaning that they are unaffected by swings in the stock market, real estate market, global insecurities or any other market condition that may effect a bond or stock. Rather, they rely on a promise by the rated insurance company that issued the original policy to pay the death benefit to the person or entity that owns the policy at the time of the original policyholder’s death. Because of this assurance, a life settlement offers an added element of stability to the buyer’s an investment portfolio.

Seller Benefits
Life settlement transactions are beneficial for the sellers as well. They can provide access to financial resources the policy owner (seller) may enjoy during the remaining years of life. Life settlements are especially helpful when the premiums on a policy are no longer affordable or the safeguards that the policy provided are no longer needed. A life settlement can also benefit a company holding “key man” policies, when either the insured has left the firm, or the company is being sold.

Who Purchases Life Settlements
Typically, Merlin Capital Group Inc., serves life settlement buyers that include:

  • Both foreign and domestic corporations who use the asset to finance major capital investment projects.
  • Private pension funds seeking to rejuvenate their performance and remedy the impact of other under-performing assets.
  • Hedge funds, asset managers and investment funds use them as non-correlating devices for their portfolios.
  • High net worth individuals and average investors are attracted to them by the prospect of superior returns.

To find out more, please contact Merlin Capital Group Inc. (“MCG”), by phone at 760-560-8290, or simply contact us. Whether you are a qualified investor seeking alternative investments unaffected by the market, a financial professional who has clients who will benefit from a life settlement transaction, or an individual looking to sell your life insurance policy, MCG will help.