Investors in Venture Capital Funds, Oil Exploration Funds, Film Development Funds and other early-stage higher risk investment opportunities can completely collateralize their principal through the use of Life Settlements as part of the investment risk hedging strategy:
Life Settlement’s characteristics of being a highly discounted asset class with the additional leverage afforded via the Time Value of Money (TVM) provides a perfect opportunity for investors to manage risks in a vehicle in which the principal is certain and timing is variable. By pooling ‘like’ assets together and achieving the Law of Large numbers, a portfolio of Life Settlements will better track along the underlying mortality curve and provide more certainty in cash flows.
Capital Settlements Ltd will acquire individual policies or pools of policies customized and structured to meet specific investment criteria in order to protect an investor’s risk capital.
Transaction Example in US Dollars
*Consult your tax professional regarding tax liabilities. |
The manner of financing municipal and government infrastructure, or any capital project can be completely restructured by the utilization of Life Settlements. This can save cities and councils enormous amounts of money over traditional financial models by effecting the early payback of funds. To learn more about these programs please contact us.
Pension and Retirement funds that have been suffering from demographic and socio-economic shifts not foreseen when the schemes were devised, can now use Life Settlements to gain back their capital losses and back fill and bolster their unfunded or underfunded liabilities.
Life Settlements can be used as a portion of the real estate transaction on a deferred payout basis. This works on ‘difficult to sell’ properties or when the seller has unreasonable expectations of the property’s current market value. It is an ideal opportunity when there is a downturn in property markets as currently being experienced all over the globe. Life Settlements as part of the acquiring assets, provides the home seller with their psychological and emotional price target and the buyer has further home price downside hedging as a result of the Life Settlement discount.
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2004 valuation: US$ 9,000,000
Specs: 55 acre estate, 27,000 sq ft of living area, banquet facilities with board room, full maid’s quarters, tournament shooting range, tennis/basketball courts, 2 lane bowling alley, indoor swimming pool with reticulating roof, self contained water and power generation plant, 7,000 sq ft auto storage with fueling and machine shop with helicopter landing facility alongside.
Purchase structure: US$8,800,000
• $ 4M cash
• Two (2) Life Settlements with $4.4M Face Amount.
- $900K and $3.5M Joint Survivor policies
- Life Expectancies both 7 yrs.
- Premium payments 1.2% of Face Amount.
- Policies issued by West Coast Life and Pacific Life, AM Best rating ‘A’
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2003 valuation: US$4,900,00 (House $3.9M and $1M for additional land)
Specs: Near San Francisco, a 5 acre estate including 370 established Redwood trees with 10,000 sq ft of living with 8 bedrooms, 10 bathrooms and separate maid’s quarters. A 50 ft lap pool and subdivided lot for additional new home.
Purchase structure: US$6,000,000
• $1 M cash
• $5 M Life Settlement on one (1) insured.
- Life Expectancy 6 yrs
- Premium payments 1.8% of Face Amount
- Policy issued by AIG-American General, AM Best rating ‘A’
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2003 appraisal: US$1,200,000
Specs: Close to San Francisco Fern Falls is a ‘Listed Property’; it was designed by one of Frank Lloyd Wright’s understudies and built in 1955. The property comprises 4,300 sq ft of living area, a pool and tennis court and 2 acres of gardens whose plants were sourced from around the world and fed with natural spring waterfalls.
Purchase structure: $1.2 mil USD
• $600K cash
• $600K Life Settlement
- Life Expectancy of 5 yrs
- Premium payments less than 1% of Face Amount
- Policy Issued by John Hancock, AM Best rating ‘A'