Advertising Banner

Wealth Managers remain sceptical about Life Settlement Funds

Found this article today while reading Citywire, this is discussing UK based funds, however there business and actions are sometimes US based as well…

As the hunt for income gets ever more desperate in the low interest rate environment, life settlement funds on paper offer an attractive proposition, but wealth managers remain cautious about using them for their clients.

Lots of question marks have been raised over these funds with the trading of life settlement policies for a profit deemed to be unethical in some quarters. There have also been issues about a lack of transparency.

However, some parts of the market appear to have cast aside these concerns. In March, the £250 million EEA LIfe Settlement fund attacted more than £28 million in inflows, which is impressive given many retail funds have haemorrhaged money in recent months.

The fund boasts 38 consecutive months of positive returns. It is on a yield of 4% and returned 11.8% in 2008.

The fund’s manager, Peter Winders, admits investors looked at the figures and harboured a ‘too good to be true mentality’, particularly in the post-Madoff age.

There were also concerns about the liquidity of life settlement funds.

Read complete article:
Wealth Managers and Life Settlement Funds

Source: Citywire.co.uk

Top Life Settlement States

We did a little research and wanted readers and visitors to be aware of which states are most popular for Life Settlements. Of course these states are higher ranked due to large population, and we also think that because 2 of them are not as regulated, that increases the amount of settlements.

Here is Top 5 list in no specific order:

California Life Settlement
Florida Life Settlement
New York Life Settlement
Texas Life Settlement
Arizona Life Settlement

If you want to find out how much your policy or a client’s policy would sell for, visit the free Life Settlement Calculator.