How to Invest in Life Settlements?

Jun 6, 2023
Est. Read Time: 2 minutes
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Life Settlements are a rapidly growing investment vehicle. If you are not familiar with life settlements as an asset class, see “What is a Life Settlement Investment.”


Why do wealthy investors, investment bankers, and others buy life settlement contracts?


When you purchase a life settlementyou choose the contract.  Similar to picking out a house when investing in real estate. You choose the profile of the insured.


Do you want to buy a policy on a younger individual, maybe age 65?  These policies can be inexpensive, however, there will be a longer holding period until the policy matures.  As a result, once the policy matures, the investor receives the profit. Do you want to invest in a policy of an older individual, maybe 85? These policies will be more expensive. However, they could have a shorter maturity time.


The companies that aggregate the policies provide a relatively extensive review of the health status of the insured. Does the person have high blood pressure? Are they overweight? Do they have a heart condition? They are looking to disclose any matters that could affect the life expectancy of the insured.

How to Invest

To invest in life settlement contracts, look for an independent investment adviser in your area.  In addition, if you use an IRA or old 401k funds to make the investment, the profits are income tax-free. Contact the IRA Club to establish a Self Directed IRA. In conclusion, if you take out the associated emotions, life settlements may be a great investment option for you or your Self Directed IRA.


For information about the Self Directed IRA or Solo 401k, call IRA Club at 312-795-0988



Be advised that IRA Club does not evaluate, review, monitor, recommend, warrant, guarantee or otherwise endorse the legality, tax treatment, propriety, performance or reliability of any investment, service, statement, opinion or other representation provided with respect to the investment opportunities listed on its site or their sponsors or providers. IRA Club has no financial arrangement, partnership, joint venture, or other affiliation with the sponsors or providers of these investments. IRA Club shall not be liable for any misinformation, misrepresentation, negligence, act, omission, investment results, or any wrongdoing with respect to any of these investments or their sponsors or providers.

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