Life Settlements Market Shows Potential to Enhance Welfare of Policy Holders According to Vida Capital

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Alfonso V. Januario and Narayan Y. Naik, both professors at the London Business School, penned a paper, “Empirical Investigation of Life Settlements: The Secondary Market for Life Insurance Policies”, that uses a comprehensive dataset of 9,002 life insurance policies to investigate the Life Settlement market from the standpoints of both sellers and investors.

The paper illustrates how the life settlements market can be of benefit to sellers and investors alike. Dan Young, President of Vida Capital Management in Austin, Texas, agrees. “If the owner of a policy lapses or surrenders it, he or she receives either no compensation, or pennies on the dollar. If instead the policy is settled, the owner receives fair value in an open market.” Josh Jones, also of Vida, points out that life settlements can provide value for investors, who gain access to an asset with low correlation to the equity markets, low volatility and the potential for outsized risk-adjusted returns.

Vida Capital Management is a registered* investment advisor and a vertically integrated asset manager focused on life settlements. For more information, please contact Josh Jones at 512-961-5667 or visit

*SEC registration is not an endorsement and does not imply any level of skill or training

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Josh Jones
Vida Capital Management
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