Life Settlements As ‘Morbid’ Investments: ‘An Asset and A Liability’

Life Settlements As ‘Morbid’ Investments: ‘An Asset and A Liability’

A U.S. News and World Report article about life settlements includes a warning from an A.M. Best managing director of insurance-linked securities about how “A life settlement isn’t just an asset; it’s an asset and a liability.”

The most significant risk to investors, the article indicates, “is that the insured lives longer than expected and investors end up paying more in premiums than they receive from the death benefit.”

The article, “The Morbid Niche of Life Settlement Funds” by Coryanne Hicks, is available here.

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