Avoid Market Volatility
Life Settlements are unaffected by volatile markets, geo-political and economic mass-risk events
Replacement for Fixed-Income in Asset Allocation
Life Settlements are a bond alternative for those seeking diversification and yield
Downside Principal Protection
A life settlement policy is always worth its face amount...
no more...no less
Life Settlements return a known yield at a multiple of current interest rates to preserve purchasing power
Peace of Mind
Life settlements are the last true buy-and-hold to maturity investment with a known cost and known yield
Meet Soteria Capital
Life Settlements organically hedge risk in ways no other investment can
The maturity of a legal contract creates the investor's yield
Returns are not influenced by the price action of markets, monetary policy, or event risk
The investor owns a fixed value asset at a significant discount
"The Big Box firms have long-standing relationships with the life & annuity carriers and that's the reason why you won't hear about life settlements from your advisor. The life insurance companies depend on high lapse and surrender rates for profitability. 9 out of 10 policies originated never pay a death benefit to a beneficiary. We hold them accountable for your benefit."
Michael J. Bradburn, Managing Director
There are many life settlement options out there that tout their funds pay current income have redemption windows and best-guess valuations. These bells and whistles serve no purpose other than to create the illusion that a quarterly management fee is justified. We simply don’t believe that it is. We don't get paid until you do.
To extract all the value from a life settlement contract, policy selection, underwriting, and a system to manage premium reserves to combat extended longevity risk renders far more value than trading policies in the tertiary market to generate alpha and call it a coupon. The real value is in maximizing the discount to face and understanding exactly what you’re buying as thoroughly and transparently as possible.
Speculation, credit quality, research, manager performance, track record and other metrics that investors weigh to buy stocks, bonds, and real estate do not apply here. A life settlement alternative investment is a Time-to-Maturity play, period.
As an investment, the face value of the contract is stated on the policy. The Spread or Yield-to-Maturity (YTM) is the investor’s discounted acquisition cost against the face amount. Unlike a stock or a home where the value is only known when and in what market you choose to sell it, a life settlement’s value is known the day you buy it.
Life settlements are perhaps the last true buy-and-hold investment left. It is a passive investment that avoids market and geopolitical risks because it’s a contract. There are no moving parts. The mechanical differentiation of a life insurance asset-backed security versus volatile asset classes is what creates the diversification and non-correlation away from traded markets.
Soteria Capital Absolute Return Portfolio Series I
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