Life Settlements

Invest in Life Settlement SPV Limited Partnerships: 20% Annual Target Return*

Key Points:

Each SPV owns the benefit of a US Life Insurance policy held on an individual with severe health impairments.
The SPVs are prefunded with required funds to meet the insurance premiums over the expected term.
Multiple Life Expectancy estimates have been collected.
Diversification across 6 impaired lives reduces single policy longevity risk.
Near-zero correlation to equity and bond markets, commodities and geopolitical events.
Longevity risk is mitigated by resilient yield profile and generous tail returns.

Life Settlement Origination

Occasionally, individuals with life insurance policies may reach a point in their life where they no longer find it necessary or affordable to maintain coverage. In these situations they may choose to surrender or let their policy lapse, forfeiting any potential future benefits. A life settlement offers these individuals the opportunity to transfer ownership and beneficiary rights of their policy to a third party buyer in exchange for a negotiated price, through the facilities of a licensed Life Settlement Broker. Momentix sees an exceptional investment opportunity in this space.

Due Diligence

Prior to Purchase: Working with licensed physicians in Canada and the United States, Momentix Capital performs robust due diligence on all policies considered for purchase. The team analyzes the insured’s medical records and policy details and carefully selects the policies offering favourable return characteristics, based on multiple life expectancy estimates.

Taking Ownership: Through our US-based subsidiary, Momentix purchases and assumes full ownership of the life insurance policies and appoints an industry-leading policy servicing company to manage all premium payments, policy administration, and tracking of the insureds.

Pricing: Momentix’s actuarial team then determines a confidence weighted range of Fair Market Values for each policy. These values form the basis from which we derive our offering price to a qualified investor.

Securitization: Upon the maturing of each policy, the SPV Limited Partnership receives the full death benefit, resulting in a significant payout that is distributed to the Limited Partnership’s unitholders. This process is the product of a carefully planned and fully contemplated strategy designed to provide robust, scalable and attractive returns.

Interested in learning more about Life Settlements?

Momentix Capital is interested in speaking with you about this very unique investment product. Please contact us via email or submit a form and we will happily provide guidance specific to your portfolio requirements.

^*Estimated performance figures are presented on a net basis after expenses and premium payments. The projected returns presented herein returns assume the Capital Requirement is paid upfront as indicated, and on the basis that undeployed capital held by the Partnership will be invested in US Dollar term deposits generating a 2% annual return. This assumption is made for disclosure and valuation purposes only and does not constitute a forecast, projection, or guarantee of future results. Actual outcomes may vary materially depending on prevailing economic and market conditions. See Offering Documents for full details. “Tail Yield” projections reflect potential additional capital contributions beyond the initial Term, consistent with the provisions of the LPA, as well as the assumed payment of premiums in each year. These figures are presented on an undiscounted basis, which we view as a conservative approach to return modeling. Actual results may differ materially. The life expectancy (LE) of these policies was determined by aggregating estimates obtained from multiple sources, including medical doctors, companies providing insurance and medical underwriting services, and actuarial professionals. Investors should be aware of the following factors: (i) no assurance of positive returns, (ii) risks related to the illiquid nature of the investment, (iii) risks related to the lack of diversification and holding a limited number of policies, (iv) risks associated with the insured surviving well beyond their life expectancy, (v) risks associated with the contestability of life settlements, (vi) regulatory risk associated with life settlements. See Term Sheet for detailed Risk Disclosures. This offering is restricted to Accredited Investors located in British Columbia, Alberta and Ontario.

Life Settlements