Introduction to the International Life Settlements Fund

• ILSF represents the next generation of Life Settlements funds, offering transparency, Luxembourg regulation and a conservative risk-management approach.  

  ILSF is a member of LISA and complies with the LISA Code of Ethics and the ELSA Code of Ethics.

  The overall investment objective of ILSF is to achieve long term capital appreciation and growth by investing in life settlements or Traded Life Policies (TLPs). ILSF will not invest in Viatical Policies or policies insuring the lives of terminally ill individuals.

  A life settlement is the sale of the benefits under a life insurance policy by a policy owner, also known as a life settler, to a buyer/investor for a portion of the insurance coverage. The buyer or investor, in this case, ILSF, becomes the irrevocable owner and beneficiary, pays the premiums and collects the full amount of life insurance coverage under the life insurance policy when the insured passes away. ILSF purchase policies where the insured is at least 70 years of age and whose medical impairments result in life expectancies between 24 and 148 months.

  By selling the policy, the life settler receives an immediate cash payment. The true economic value of the policy is created by the buyer/investor – without the sale the policy owner would only receive the surrender value, if any, from the insurance company. The cash payments from a life settlement are always higher than the surrender value embedded in the contract with the Insurance Company.

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  Why does the Life Settlements

  market exist?

  Policy holders can sell their unneeded or unwanted policies to investors for an immediate lump sum that is greater than surrendering or lapsing them. Reasons for selling policies include:

  • Individual’s economic circumstances having changed (cash is needed for major expenses, insurance is no longer needed or premiums are unaffordable).
  • Family: Beneficiaries of a policy having predeceased the owner.
  • Business: Changes in key-executives of a firm (key-man insurance policy cover losses incurred when key management personnel pass away).

   

  The cash payments from a Life Settlement are always higher than the surrender value embedded in the contract with the Insurance Company.

  Additional information is available in the LISA guide The basics of Life Settlements and in the Bulletin of the SEC for seller and investor.