Life settlement funds operate like mutual funds but instead of buying stocks or bonds they purchase life insurance policies. These funds have operated in the U.S. since the 1980s. They have investors, usually other financial institutions (i.e., hedge funds) or high net worth individuals, and the funds seek to maximize the yield, return on investment, for their investors.
When looking at life insurance policies and determining how much they are willing to pay for them, life settlement funds weigh the costs of the policy against the death benefit. The costs include not just what they pay the seller of the policy, but the premium they have to pay until the death of the insured person, and other transactions costs (i.e. actuarial and broker fees).
Golden Bridge is a life settlement “provider”. We find life settlement funds willing to purchase your life insurance policy, and if it qualifies, get to make a purchase offer. If you accept the offer, we then facilitate the contracting, closing of the sale, and the escrow of the funds until the insurance company has officially changed the policy owner and beneficiary to the life settlement fund. Then you get your money.
To get started on finding life settlement funds that will buy your policy, please call or us or fill out the Request a Quote form.