Roller coasters are considered a very modern type of entertainment. The few minutes experienced on these popular thrill rides deliver a non-stop range of emotions from the moment the coaster cars begin to slowly ascend their first hills to when the cars return to the loading platform. It’s likely that these emotional thrills are a welcome reaction to riding a coaster.
However, the roller coaster effect isn’t exactly desired in other aspects of life, such as toll roads or the stock market. While some may find a “toller coaster” as an enjoyable novelty, it’s safe to say that there’s no enjoyment in the constant barrage of news regarding the volatile market.
So how does one protect their hard-earned assets in a time of roller coaster markets? Any astute reader of our blogs can once again predict that I’m going to now suggest Senior Life Settlements as an alternative investment during times of stock market instability. The Capstone team has known for years that Senior Life Settlements are unaffected by risks typically associated with capital market-based products. This is part of the reason why our team recognizes the tremendous value in this asset class as an overall investment risk hedging strategy.
The Capstone team has also been aware of the stability and continued growth of the Senior Life Settlements industry. In 2016, the Conning Report stated that the face amount of settled life insurance policies via the secondary market was $2.1 billion, a 23% increase from the previous year. The latest Conning Report, which covers 2017 and the first half of 2018, reports the settled policy value as $2.6 billion, which represents another consecutive year of growth.
What’s fueling this stable, upward trajectory within the Senior Life Settlements industry? According to Steve Webersen, the Head of Insurance Research at Conning, it’s the following: "Investor interest (in Senior Life Settlements) reflects a combination of a prolonged low interest rate environment, continued investment allocations to non-correlating alternative asset classes, and the stability of the life settlement landscape." In other words, market forces and increased visibility are leading investors to Life Settlements.
The increased visibility isn’t just from investors—as the Baby Boomers generation continues to age, more seniors are becoming aware of the financial value of Senior Life Settlements. As my colleague Michael Bradburn succinctly states, “the number of insureds becoming aware that there is a favorable alternative to lapsing or surrendering an unwanted or unneeded policy is swelling.” As more policy sellers enter the market, investor demand is likely to follow.
As the markets change, it’s not a bad time to look for more stable options. Senior Life Settlements are a great place to start. If you’re ready to exit the market roller-coaster and reduce investment risk, let’s talk. Please schedule a call with us, email us at contact@capaltstrategies.com, or call Jason Bokina at 404-504-7006.
