The transfer of ownership and beneficiary rights of a life insurance policy on an insured in exchange for a cash payment.
The Life Settlement Process
Life Settlements are A Favorable Alternative to Lapsing or Surrendering a Policy
Gaining Recognition as a Mainstream Financial Option
90% of life insurance policies (by face amount) that are terminated are either lapsed or surrendered.(2)
80% of Americans currently fall short of conservative retirement savings targets.(3)
The Case for Life Settlement Investing
The chart above pulls the S&P 500 Index’s ten most recent down months as of 1/31/24 and does not represent the index's all-time return. To view the historical monthly returns for the S&P 500 Index, visit Ycharts: S&P 500 Monthly Return. View the fact sheet for the historical returns of AIR U.S. Life Fund II QP, LP (Class A).
Compelling Market Opportunity
The life settlement industry has grown considerably and gained recognition but is still not fully understood or utilized, offering big opportunities for more growth.
Enhancing Financial Security and Quality of Life
Life Settlement Case Studies
A Meaningful Investment: Life Settlements
The life settlement asset class provides investors a way to make a positive, tangible impact on society. Here, we explain how life settlement investments positively impact senior citizens by providing needed liquidity using real world examples.
AIR Asset Management’s Longevity-Based Strategy
Want to learn more about AIR Asset Management’s approach to investing in the life settlement market? Request more materials from our team.
2: American Council of Life Insurers- “Life Insurers, Fact Book”.
3: Milliam USA.
4: Past performance is no guarantee of future results. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise and estimate of future performance. Data as of 12/31/23. Notes: Returns have been calculated using the geometric mean of historical year-end returns over a 5-year period. Volatility calculations are based on the Sample Standard Deviation method. For historical returns specific “AIR Life Settlement Strategy,” please refer to the AIR U.S. Life Fund II QP, LP fact sheet. Additional information and data sources for other mentioned indexes and funds can be found in the Index & Source Guide.
5: 2021 Life Settlements – The Growth Continues | Conning.
6: GITNUX Market data report 2023.
7: Life Insurance Industry per the American Council of Life Insurers Annual Report (2020). American Real Estate Industry per the MSCI – Real Estate Market Size report (2021 / 2022).
8: Total Life Insurance Industry refers to the total face value of individual life insurance policies in force in 2020. Annual Life Settlement Market Opportunity includes policies with an estimated age of policyholders over 65 years old. The current Annual Life Settlement Market refers to the total face value of policies settled in 2021.
DISCLOSURES
General: The information and any disclosures provided in this communication are in summary form and prepared solely for informational purposes. This document does not constitute an offer for interests in any investment fund managed or advised by AIR Asset Management ("AIRAM"). An offering of AIRAM Funds will be made only by a definitive confidential private offering memorandum and only in those jurisdictions where permitted by law. Any actions made by you based on the information and any disclosures not contained in or consistent with the Funds' confidential private offering memorandum will be solely at your own risk.
Speculative Risk: Alternative investments involve substantial risk, including the loss of principal, and no assurance can be given that our investment objectives will be achieved.
Illustrative Purposes Only: Examples of our processes and any other ideas presented herein are for illustrative purposes only. There is no guarantee that the Funds will acquire a position in an issuer or industry referenced in such examples or ideas or that any such position would be profitable. This material is for informational purposes only. Any opinions expressed herein represent current opinions only, and while the information contained herein is from sources believed reliable, there is no representation that it is accurate or complete, and it should not be relied upon as such. We accept no liability for loss arising from the use of this material. Federal and state securities laws, however, impose liabilities under certain circumstances, and nothing herein shall in any way constitute a waiver or limitation of any rights that a client may have under U.S. federal or state securities laws.
Not An Investment Advisement: By accepting delivery of this confidential communication, you acknowledge and agree that (a) any information provided by AIRAM, the Funds, or any of their respective affiliates (including information set forth in this communication) is not advising to invest in the Funds or any other investment vehicle managed by AIRAM and that none of AIRAM, the Funds, or any of their respective affiliates is undertaking to provide any advice to you (impartial or otherwise), or to give advice to you in a fiduciary capacity in connection with an investment in the Funds or any other such vehicle and, accordingly, no part of any compensation received by AIRAM or any of its affiliates is for the provision of investment advisement to you and (b) AIRAM and/or its affiliates have a financial interest in any investment in the Funds or any other such vehicle on account of the fees and/or other compensation they expect to receive from the Funds or such other vehicle as disclosed in the documents governing the Funds or such other vehicle.
