A life settlement is an alternative asset class that is modeled after a real estate transaction. It is similar in nature to a zero-coupon bond in that purchaser knows at the time of purchase what the estimated life expectancy return will be. The H. Haerri modeling has the purchaser acquire the entire policy with no fractional interest. The transaction is one in which a senior sells their life insurance policy they no longer need or want and is an alternative to a policy lapse or surrender which will result in a possible loss of all premiums paid and the death benefit.

 

U.S. Life expectancy is rising and there is an enormous need for our aging population to maintain their standard of living. The inherent value of a life insurance policy death benefit through a life settlement transaction can provide newfound economic opportunity for the policy owner and for the purchaser of the policy. This is the sixth yearly increase and signals a return of consumer interest in life settlement and capital looking to invest in life settlements. Life Settlements remain an appealing alternative asset class to investors seeking the potential for above average return relative to the current interest rate environment.

 

A research study from Conning Research indicates the following;(1)

• The average of our ten-year forecast of the annual gross market potential for life settlement is approximately $233 billion and increase from prior forecast.

• The average of our ten-year forecast of the annual volume of new life settlement is approximately $7.3 billion, again an increase from the prior forecast.

• The increased annual volumes since 2016 gave resulted in growth of in-force amounts from $21.6 billion in 2018 to $24.1 billion in 2020. H.Haerri analyzes designs and implement portfolio strategies to provide diversified investment options for Venture Capital groups, Institutions, Accredited and Qualified Investors. The portfolio modeling is similar to bond laddering with different insureds and life expectancies that reduces risk and leverages policies to secure an optimal return for our investors.

 

H. Haerri VCPF, Inc is a private investment company pursuant to The Investment Company Act of 1940, Sections 3(C) and 3(C)(7). Conning, C. (n.d.). Life Settlements the Growth Continues 2021. Conning. Retrieved November 20, 2021, from https://www.conning.com/about-us.