Life Settlement Investments
Life settlements are one of the best kept secrets in the world of investing. For nearly 20 years sophisticated investors have used life settlements as a hedge against stock market volatility, interest rate fluctuations, economic cycles and recessions. This alternative investment class has traditionally been only for high net worth individuals or institutional investors. Pacific West Capital Group is a pioneer in making this investment available to the everyday investor in California.
What is a Life Settlement?
In the simplest of terms, a life settlement is when a person usually over the age of 65 chooses to sell a life insurance policy they own to a third party rather than turn it back to the insurance company or let it lapse. The third party is the investor in that policy and collects the proceeds of the policy when it matures.
The life settlement market has tripled in the last three years to a $20 billion investment category and has been projected by Bernstein Research to grow to $160 billion in face value of policies. The market has grown rapidly because of strong investor returns and the advantages created by not having exposure to the volatility of traditional financial markets.
Pacific West Capital Group
Pacific West Capital Group is unique in the world of investment advisors. Rather than trying to sell dozens or even hundreds of different investments, we specialize in only life settlements. This “boutique” approach makes us one of the most knowledgeable firms in the country about the life settlement market. Our ability to bring you, the investor, choice policies with a potential total fixed return of 12-14% is why we have been so successful.
In California, investments in life settlements are considered securities and are therefore regulated by the Securities Division of the CA Department of Corporations, as set forth through legislation adopted by the passage of Senate Bill 1837.