Unlocking the Potential of Longevity-Oriented Investments

Experts in facilitating unparalleled access to longevity-oriented investments for institutional investors and family offices, serving as the premier gateway to a distinctive asset class tailored for sophisticated investors.

About LifeCap

Elevate your portfolio

A Distinctive Asset Class for Sophisticated Investors

In an era where traditional asset classes are increasingly subject to market volatilities and correlated risks, longevity-oriented investments present an opportunity to diversify and stabilize your portfolio with an appealing blend of a largely uncorrelated investment, attractive yield potential, and risk-adjusted returns.

Diversification

Diversify your portfolio with longevity-oriented investments that transcend market volatilities.

Stability

Returns driven primarily by demographic inevitabilities, providing a hedge against market volatility.

Social Responsibility

Align your financial goals with ethical considerations by investing in assets that offer both financial returns and social impact.

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Sophisticated Investing

Accessing the Longevity-Oriented Asset Class through Life Settlements

The LifeCap team has spent more than 20 years working alongside institutions, advisors, and individual investors alike to educate investors about alternative assets, with a focus on longevity-oriented investments.

Our strategic relationships with industry leaders can help investors meet capital deployment targets with certainty, speed, and precision.

We pride ourselves on facilitating a seamless and efficient capital allocation process, ensuring that investors can access the unique advantages of the longevity-oriented asset class quickly and confidently.

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Our Solutions

LIPPS

Life Insurance Policy Purchase Strategy

The Life Insurance Policy Purchase Strategy (LIPPS) enables institutional investors and family offices to access a turnkey program to build a customized portfolio of life insurance policies to meet investment objectives with a potentially favorable risk/return profile.

Largely uncorrelated performance.
Competitive potential returns.
Ability to achieve lower projected volatility with a broad range of capital commitments.
Bespoke portfolios to fit specific investor needs.
Timely capital deployment with reduced ramp risk.

Indicative Terms of Investment

Purchaser: A new SPV

Minimum Investment: Varies based on the structure of the portfolio and the investment objectives.

Policy Liquidity: Potential opportunity to monetize policies prior to maturity.

Flexibility: Bespoke portfolios with a broad range of capital commitments.

Ramp Commitment: Hedge provided if the commitment is not fully invested during the investment period.

PAIRS

Policy & Annuity Investment Realization Strategy

The Policy & Annuity Investment Realization Strategy (PAIRS) enables institutional investors and family offices to access a turnkey program to efficiently assemble a customized portfolio of life insurance policies while mitigating longevity risk by pairing each policy with one or more annuities on the same insured.

Competitive potential returns.
Credit investment with positive characteristics relative to carrier-issued bonds.
Mitigates or eliminates longevity risk.
Can be structured to provide a fixed coupon.

Indicative Terms of Investment

Purchaser: A new SPV

Minimum Investment: Varies based on structure of the portfolio and the investment objectives.

Periodic Distributions: Ability to structure the investment to pay a fixed coupon.

Policy Liquidity: Potential opportunity to monetize policy and annuity pairs prior to maturity.

The Secondary Market for Life Insurance

Total Addressable Market

Current research indicates that 10,000 individuals in the United States reach retirement age every day, with anticipated volume doubling over the coming decades to constitute over 20% of the population by 2050.

The 2022 Conning report estimates that more than $160 billion of existing life insurance would qualify for a life settlement.

The life settlement industry purchased $4.6 billion of face value in the same year.

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The 2022 Conning report estimates that more than $160 billion of existing life insurance would qualify for a life settlement.

The life settlement industry purchased $4.6 billion of face value in the same year.

Face amount of policies that would qualify in 2022
Face amount of policies settled in 2022

The 2023 ACLI Fact Book estimates that there is over $14 trillion of individually owned life insurance in force.

The 2023 ACLI Fact Book estimates that more than $700 billion of life insurance was lapsed or surrendered in 2022.

Conning estimates that there was more than $29 billion of settled inforce policies owned by investors in 2023.

Benefits

Empowering Policyowners and Investors

The secondary market for life insurance is a beacon of financial empowerment and strategic opportunity, presenting numerous benefits for both policyowners and investors.

Policyowners

More Value than Surrendering Enables policyowners to receive on average 4X-7X more than cash surrender value.
Immediate Liquidity Offers a timely financial solution, enabling policyowners to convert an illiquid asset into an immediate cash payment while relieving the cash drain of ongoing premiums.
Financial Flexibility Empowers policyowners to address immediate financial needs, pursue new investment opportunities, and improve their quality of life.
Personalized Financial Planning Enables more effective management of personal finance through strategic asset reallocation.
No-Cost Protection for Beneficiaries Retained Death Benefit enables policyowners’ beneficiaries to receive a portion of the death benefit with no future premiums.

Stability

Portfolio Diversification Adds a layer of diversification with an asset class that is largely uncorrelated to traditional financial markets.
Socially Responsible Investing Facilitates a positive impact by providing policyowners with valuable financial alternatives, aligning financial goals with ethical considerations.
Low Volatility Investment Potential low volatility with a diversified portfolio of policies with an active tertiary market that offers investors an opportunity to monetize policies before maturity.
Policies are a Senior Obligation of Carriers Payment of death claims take seniority over unsecured carrier debt, with regulations in place to help ensure payment at maturity.
Largely Uncorrelated Performance Primary performance driver uncorrelated to other markets.

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