How Life Settlement Investment Funds Can Help You Save for Your Children’s College Education

Planning for your child’s or grandchild's college education can feel like trying to hit a moving target—tuition costs are rising, markets are volatile, and traditional savings options often fall short. While 529 plans and custodial accounts are popular tools, many families are now looking to alternative investment strategies to help meet their education savings goals.

One of the most promising yet often overlooked options? Life settlement investment funds.

At Arthika Capital, we believe in empowering investors with access to institutional-grade strategies that offer long-term growth, stability, and diversification. Life settlement funds check all three boxes—and can be a powerful component in preparing for major future expenses like higher education.

Saving for a College Education

What Are Life Settlement Investment Funds?

A life settlement investment fund pools investor capital to acquire and manage a diversified portfolio of life insurance policies on the secondary market. Rather than purchasing individual policies, investors gain exposure through a fund managed by experienced professionals who handle policy selection, underwriting, premium management, and payout distribution.

In essence, these funds allow you to invest in the life settlement asset class without the complexity of owning policies directly.

Why Life Settlement Funds Are Ideal for College Savings Goals

1. Consistent, Non-Market-Correlated Returns

   Life settlement funds are based on actuarial risk, not market speculation. This means their performance isn’t tied to interest rates, equities, or economic cycles—making them a stable anchor in a diversified portfolio. For parents looking to grow college savings over 8–15 years, this can offer peace of mind and predictability.

2. Professional Management & Diversification

   Unlike buying a single life insurance policy, a fund spreads risk across dozens (or hundreds) of policies. This diversification helps protect your investment from the impact of any one policy taking longer to mature than expected. With expert managers handling all due diligence, longevity forecasting, and premium payments, investors benefit from institutional-grade oversight.

3. Attractive Long-Term Yields

   Life settlement funds typically aim to deliver mid to high single-digit annual returns—often outperforming savings accounts, CDs, and some conservative market-based investments. For families with a multi-year horizon to save, this can help offset rising tuition and inflation.

4. Strategic Alignment with Education Timelines

   College planning is inherently long-term, making life settlement funds a good fit. The investment horizon of most life settlement funds ranges from 7 to 10 years, which aligns well with the average window parents have to prepare for their child’s college costs.

A Smarter, Alternative Path with Arthika Capital

At Arthika Capital, we provide access to curated life settlement investment opportunities through professionally managed funds. Our team conducts deep due diligence on policy portfolios and partners with experienced fund managers who prioritize transparency, ethical sourcing, and performance.

We’re here to help you:

• Assess whether a life settlement fund fits your risk profile and timeline

• Integrate alternative assets into your broader education savings plan

• Invest in a vehicle designed to generate real, non-market-correlated growth

Final Thoughts

Saving for college doesn’t need to rely on market timing or low-yield savings accounts. With a life settlement investment fund, you can pursue higher returns with lower volatility—all while working toward the goal that matters most: giving your children the opportunity of a higher education.

Interested in learning how life settlement funds can support your education savings goals?  Contact Arthika Capital today for a personalized consultation.