The Life Settlement Investment: The Process
The process of creating a Life Settlement offering has several steps involving quite a few participants. LIMC manages the entire process with attention-to-detail and financial expertise to ensure the best possible outcomes for policyholders and investors. Here is a high-level view of how the process works.
The person whose life is covered by the insurance policy (The Insured) decides to sell their policy to address their more immediate personal financial goals.
The Insured’s policy is introduced to the secondary life settlement market through an Agent, Life Settlement Broker, Financial Advisor, or Life Settlement Provider, acting as an intermediary to facilitate the sale of a policy. The Insured may also opt to sell their policy directly to LIMC.
A Life Expectancy Underwriter underwrites the life expectancy of the Insured by reviewing current personal and medical information. They issue a summary report to LIMC which is used in the policy purchase evaluation and projections.
LIMC completes a thorough due diligence process of potential policies, makes an offer based on economic value to investors, and moves to purchase qualified policies.
Unit investors and Private Equity Funds provide capital through investment in Life Settlement Offerings or Funds differing in size and scope consisting of various life policies prudently screened and selected by LIMC.
LIMC strategically groups policies into a Private Placement Memorandum offering or Closed-End Fund investment vehicle. Typically, investors choose to invest on a unit basis in an offering. As the policies settle, investors receive distributions until all policies in the investment have settled.