---
title: Are Life Settlements A Good Investment
description: Are Life Settlements A Good Investment? We answer that today.
---

[The BetterWealth Show](https://info.betterwealth.com/blog/the-betterwealth-show)

# [Are Life Settlements A Good Investment](https://info.betterwealth.com/blog/the-betterwealth-show/are-life-settlements-a-good-investment)

 Written by [Caleb Guilliams](https://info.betterwealth.com/blog/the-betterwealth-show/author/caleb-guilliams) | Jan 28, 2025 3:23:29 AM

Ever wondered why someone would invest in life settlements? Let's break it down. This investment strategy stems from a historic decision in 1911, when a man in need of surgery traded his life insurance policy to his doctor. The insurance company initially contested the benefit claim, but the Supreme Court eventually ruled that life insurance contracts are personal property. This paved the way for life settlements as we know them today.

## The Life Settlement Process

1. An individual sells their life insurance policy: 
     - The seller no longer needs, wants, or can afford the policy.
     - The policy is sold for more than its cash surrender value provided by the insurance company.
2. Investors, such as BetterWealth, purchase these policies: 
     - They continue to make premium payments on the policy.
     - Upon the individual's passing, the death benefit is collected.
3. The death benefits are distributed among the investors in the fund.

## BetterWealth's Journey with Life Settlements

For over 13 years, BetterWealth has been successfully involved in life settlement investments, purchasing approximately 1800 policies. They've created private equity funds, offering investors an asset class that is uncorrelated to the market.

## Key Benefits of Investing in Life Settlements

- Win-win scenario for policyholders and investors:
- Asset uncorrelated to the market:
- Structured similar to real estate or business investments:

## Conclusion

Life settlements offer a unique investment opportunity by transforming traditional life insurance policies into valuable assets. BetterWealth's experience and innovative approach have transformed this field, creating beneficial outcomes for all parties involved.

[View full post](https://info.betterwealth.com/blog/the-betterwealth-show/are-life-settlements-a-good-investment)

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