London Business School Research Paper

Empirical Investigation of Life Settlements: The Secondary Market for Life Insurance Policies

Afonso V. Januario
London Business School

Narayan Y. Naik
London Business School - Institute of Finance and Accounting

In a study of 9,000 policies that were the subject of a life settlement between 2001 and 2011, policyowners received more than four times the cash surrender amount through a life settlement, according to a study recently concluded by Professor Narayan Naik and Afonso Januario of London Business School. Aside from the obvious benefits to consumers looking for options with regard to their unwanted or unneeded life insurance policies; Professor Naik’s research also found that the expected rates of return for investors are consistently and significantly higher than treasury yields.

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