History
Life Settlements held legally valid by the U.S. Supreme Court since 1911. Medical underwriting has progressed, making active investments possible.
Life Insurance Companies
By law, life insurance companies must have one dollar per dollar of premium that is issued in the form of annuities or life insurance. Many insurance companies go beyond this, maintaining a reserve surplus above 100% so they can make good on their guarantees to policy holders.
Asset Class Background
The secondary traded market of U.S. Life policies is expected to grow to 160 billion dollars over the next decade. The primary market of U.S. whole life policies is worth 9 trillion dollars which indicates a life settlement penetration of less than 1%. As the number of people over age 65 increases over the next 25 years, the number of policy owners willing to sell their policies will increase significantly.