Investment Education PLC

Traded Life Policy Investments
Last Updated - 23 February 2009
Todays Date -
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Duration  day
Available as an in-house course. Details on request.

Background & Objective

Traded Life Policies (TLPs or Life Settlements), the secondary trade of US Life Insurance Policies, are a rapidly growing investment market as investors increasingly seek out returns that are not correlated to the Fixed Income and Equity markets as well as having visible and fairly definite returns.

A major problem is a lack of understanding as to the structure, process and pricing of this unusual Investment class. This course is designed to give delegates a comprehensive overview of the market, its participants, processes and example prices besides current issues. No prior knowledge of the Insurance or Traded Life Policy universe is assumed.




- What is a TLP? History and jargon. Viaticles, Size of market

- How does it compare to other investment products(correlation with traditional asset  classes, level of returns)

-The players:  insureds, beneficiaries, funds, brokers, underwriters, tracking agents

- What is a STOLI  and what are the issues ?

- What is premium financing and what are the issues ?

-Components of a life policy (whole life, universal life, cash value, premiums, wet policies, dry policies, contestability)

-Different Life Settlement products. Direct vs. Synthetic


-State vs. Federal

-Self-regulation and voluntary practices  


-The 4 key variables (Face value, premiums, discounts and life expectancy)

-Transaction costs

-Expected returns


-Trust setup

-Buying a wet policy or a dry policy

-Typical valuations and commissions