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FAQs

What are life settlements?

Life settlements involve purchasing life insurance policies from policyholders who no longer wish to maintain them, typically at a discount from their face value.

What are the risks associated with life settlements?

Risks include changes in life expectancy, policy premiums, regulatory changes, and potential legal disputes. Investors should carefully assess these risks before investing.

What are the tax implications of investing in life settlements?

Tax treatment varies by jurisdiction and individual circumstances. Consult a tax advisor to understand how investing in life settlements may affect your tax situation.

How do life settlements work?

Investors buy life insurance policies from policyholders who receive a lump sum payment in exchange for transferring the policy’s ownership and beneficiary rights.

How long is the typical investment horizon for life settlements?

Life settlement investments usually have a medium to long-term horizon, typically ranging from several years to over a decade, depending on the policyholder's life expectancy.

Can I sell my life settlement investment before maturity?

Secondary markets exist where investors may sell their life settlement investments, though liquidity can vary, and transactions may involve discounts to market value.

What types of investors are suitable for life settlements?

Accredited investors and high net worth individuals often invest in life settlements due to the substantial capital requirements and the complex nature of these investments.

How are life settlement investments managed?

Active asset management involves monitoring policy performance, managing premiums, and adjusting strategies based on changes in life expectancy and market conditions.

How do I evaluate
the performance of my life settlement investment?

Performance is typically evaluated based on cash flows received from policy benefits and premiums paid, adjusted for any expenses and fees.

What are the potential returns from investing in life settlements?

Life settlements can offer potentially higher returns compared to traditional investments, driven by the difference between the  purchase price and the face value upon maturity.

Are life
settlements regulated?

Yes, life settlements are regulated by state laws in the United States and may also be subject to regulatory oversight in other countries where they are offered.

How can I get started with investing in life settlements?

Research reputable firms like Arthika Capital, who specialize in life settlements, understanding their investment strategies, risks, and returns. Consult with financial advisors to see if life settlements align with your investment goals.

Want to know more?

Our team is ready to assist you. Reach out to us via email or submit a form and our team will gladly provide expert financial guidance tailored to your individual requirements.

DISCLAIMER: Any references to investment funds sponsored and managed by Arthika Capital are provided solely for informational purposes regarding the investment strategies employed by Arthika Capital. This information does not constitute an offer or solicitation for the purchase or sale of any such investment fund. The information on this website may contain forward-looking statements, which are based on assumptions regarding future events and outcomes. These statements involve inherent risks and uncertainties, and actual results may differ materially from those anticipated. Forward-looking statements are identified by words such as "believe," "expect," "intend," "plan," "anticipate," "will," and similar expressions. While Arthika Capital believes the assumptions are reasonable, it cautions that actual results may differ due to factors beyond its control, including market conditions and investment performance. Arthika Capital assumes no obligation to update these statements. Investment decisions should be made only after reviewing the Confidential Memorandum and governing documents of the relevant fund. These documents are accessible exclusively to qualified clients or purchasers with whom Arthika Capital has an established relationship in compliance with applicable laws. Please note that any regulated activities related to these investment funds are conducted by licensed and regulated partners.

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