On the surface, Senior Life Settlements offer several inherent risk-mitigation characteristics as an investment, especially when compared to the volatility and uncertainty often associated with capital market based products. So, what risks should you be concerned with when considering investing in this asset class? Given that all of our ultimate fates are sealed, it really comes down to properly managing time or what we refer to as, “extended longevity risk.”

It was this fact that led Capstone Alternative Strategies to develop the Premium Reserve Management (PRM) Solution. The solution has allowed Capstone to provide investors with an extended longevity risk transfer created by the ability to manage the premium reserves for additional yield. This elongates our ability to absorb premium obligations well beyond an insured’s life expectancy evaluation, further allowing for time to run its course and mitigate the risk of an investor being called upon to invest more money to keep policies in force. These are known as Premium or Capital Calls. The PRM was invented as our own version of reinsuring extended longevity risk. The ultimate objective is to provide investors with a greater degree of certainty by creating an instrument with a known outcome in terms of an investor’s total projected yield from the investment.

The Senior Life Settlement industry is quickly becoming a mainstream alternative fixed income investment. The non-correlated nature of the investment offers appeal to both individual accredited and institutional investors. The Capstone PRM is detailed in a recent white paper written by Capstone Alternative Strategies. It details both the development and structure of the PRM. To receive a copy of the Capstone PRM white paper, click here. To learn more about Senior Life Settlements, call Jason Bokina at 404-504-7006 or email contact@capaltstrategies.com.