The industry is further spreading the risk of a person living longer than expected by packaging several lives together in one investment. It's called a fractionalized Life Settlement. A great way to understand a Life Settlement is to compare it to a Reverse Mortgage. It is exactly the same concept. Some seniors need cash now for prescriptions or whatever, more than they need a paid off house. In the same way some need cash now more than they need to leave money to beneficiaries.
The industry is further spreading the risk of a person living longer than expected by packaging several lives together in one investment. It's called a fractionalized Life Settlement. A great way to understand a Life Settlement is to compare it to a Reverse Mortgage. It is exactly the same concept. Some seniors need cash now for prescriptions or whatever, more than they need a paid off house. In the same way some need cash now more than they need to leave money to beneficiaries.
winsman01 1 year ago