A life settlement investment involves purchasing an existing life insurance policy from the policyholder for a lump sum. The investor becomes the new beneficiary and continues to pay premiums until the policy matures (i.e., the insured individual passes away). In return, the investor receives the death benefit of the policy.

At Level Bridge Capital, we prioritize capital preservation and investor trust. We use disciplined underwriting processes, data-driven insights, and a focus on risk management to ensure that your investment is secure. Our team has decades of experience in financial planning and wealth preservation, and we make every investment decision with the goal of protecting your principal.

Life settlements offer a unique alternative to traditional investments. Unlike stocks or bonds, which are highly susceptible to market volatility and interest rate fluctuations, life settlements provide a more stable and predictable return, driven by the policyholder’s life expectancy. Our investments are designed to weather economic cycles, offering you a way to diversify and reduce your portfolio’s exposure to market swings.

Life settlement investments are typically available to accredited investors, who meet specific income or net worth thresholds as defined by the SEC. These investors have the resources and knowledge to assess and manage the unique risks associated with alternative investments like life settlements.

Risk management is central to our approach at Level Bridge Capital. We conduct thorough due diligence, relying on both actuarial data and in-depth analysis of each policy. Our seasoned team of professionals, with expertise in distressed asset acquisition and structured finance, carefully assesses each opportunity to ensure the underlying risk is well-understood and mitigated.

Returns from life settlement investments can vary based on factors such as the life expectancy of the insured individual, the premiums paid, and the death benefit received. At Level Bridge Capital, we strive to deliver consistent, risk-managed returns by focusing on long-term wealth preservation and using data-driven underwriting processes to assess each investment.

• We never make capital calls.
• Investor exposure is capped at exactly what they invest.
• Leverage is non-recourse and secured only by the policies—not investors.
• There is no personal liability, no margin calls, no scenario where additional money is required.

Your maximum risk = your invested capital, and nothing beyond that.

Why regulation cannot increase investor risk.

We eliminate regulatory risk by closing every policy through a licensed, stateregulated life settlement provider, ensuring:

• State-required disclosures to sellers
• Verified seller identity & authorization
• Clean chain-of-title
• Regulated escrow
• Anti-fraud protection
• Proper carrier notifications
• Consumer protection compliance
• Full documentation audits

Regulation protects the investor—it never creates additional liability.

Our portfolio is fully compliant and institutionally marketable.

What are the risks (and how we mitigate them)?

• IRR decreases (delay)
• ROI does not change — death benefit is guaranteed

Mitigation:

• Large, diversified pools (100–150 policies)
• Updated medical records & re-underwriting
• Ability to sell policies anytime
• Policies naturally appreciate as insureds age

B. Premium Cost Risk — Eliminated by long-term binding illustrations

We run 10-year binding premium illustrations on policies with a 2-year LE.

This:

• Locks in premiums
• Prevents premium spikes
• Makes cost basis predictable
• Eliminates the largest operational risk most funds face

Most buyers run short illustrations (e.g., 2-year illustration), which causes huge premium increases when the illustration expires.

We avoid this entirely.

C. Cashflow Risk — Controlled with reserves

We reserve 12–15 months of premiums at acquisition.

We:

• Stress test cashflows
• Reprice with updated LEs
• Sell policies proactively to maintain liquidity

Cashflow is the most critical operational component, and we manage it daily.

D. Liquidity Risk — Mitigated by active secondary-market selling

Policies can be sold in 2–6 weeks because:

• Policies increase in value as insureds age
• Seasoned assets are in high demand
• Updated LEs create pricing clarity

If LE extends too long, we sell and redeploy capital.

If someone lives longer than expected:

• IRR decreases
• The death benefit is still guaranteed
• ROI does not change
• Premiums are covered by reserves
• We re-underwrite to adjust LE
• We may sell the policy for immediate liquidity

This is a timing issue, not a capital-loss issue.

Downside Scenario

• LE extends significantly
• IRR drops
• Premiums continue from reserves
• We sell select policies to maintain liquidity
• Policies naturally appreciate with age

Downside = lower IRR, NOT loss of capital.

Base Case

• Policies mature near LE or LE+2
• IRRs in the 15%–18% range
• Smoother cashflow due to diversification

Upside Scenario

• Early maturities
• Updated LEs shorten
• Premium optimization reduces costs
• Select policies sold at attractive premiums

IRRs can exceed 30%+ depending on timing.

Life of a Single Policy

1. Purchase at 15–25% of face value
2. Run 10-year binding premium illustration
3. Reserve 12–15 months of premiums
4. Re-underwrite regularly
5. Pay annual premiums
6. Policy matures fund receives full death benefit
7. Proceeds distributed & reinvested

Simple example: Buy for $100K pay $40K premiums receive $500K.

Portfolio Characteristics

• 100–150 policies
• Even LE ladders (0–2, 3–5, 6–8 years)
• Average death benefit $500K–$600K
• 65–70% capital into acquisitions
• 30–35% for premiums & reserves

Cashflow

• Premiums are paid monthly
• Maturities start as early as year 1
• Diversification smooths payouts
• Liquidity increases with each maturity and sale

We sell when:

• LE extends
• IRR drops below threshold
• Premiums become inefficient
• Market demand is high
• Cashflow needs change

Selling policies:

• Creates liquidity in weeks
• Often generates gains (policies age = value increases)
• Improves overall IRR
• Optimizes the portfolio

It’s a core strategy, not a last resort.

Medical records reveal:

• disease progression
• medication burden
• frailty
• cognitive decline
• hospitalization frequency
• functional impairments
• comorbidity severity

AI combines these with socioeconomic and geographic datasets to produce a tighter, more accurate LE, improving selection and pricing.

Life settlements are asymmetric because:

• Value increases as the insured ages
• Payouts are fixed and guaranteed
• Returns are uncorrelated with markets
• Outcomes are actuarial, not economic
• Time increases value
• Mortality is unaffected by recessions, inflation, or rate cycles

This disconnect is one of the main reasons institutions love this asset class.

Yes. We only purchase policies that are fully beyond the 2-year contestability and suicide periods. This ensures that the carrier cannot rescind the policy due to misrepresentation or non-payment during the initial 2-year window. This is a hard requirement in our underwriting process—no exceptions.