How the Laureola Advisors’ strategy helps vulnerable retirees and tackles three ESG-related issues

As an essential part of our commitment to ESG practices, Laureola Advisors is a signatory to the United Nations Principles of Responsible Investment (UNPRI). More information about UNPRI’s six principles can be found on the organization’s website.

Laureola Advisors is an Investment Manager with an exclusive focus on Life Settlements, a Life Settlement being the sale of a life insurance policy which is no longer needed from the insured to an investor who takes on the obligation to pay the premiums and eventually collects the death benefit; it is the “Social” pillar of the ESG framework that applies to our business.

As a signatory to the United Nations Principles of Responsible Investment (UNPRI), Laureola Advisors believes its life settlements fund can help vulnerable retirees and tackle three ESG-related issues in the US:

1. There is a shortfall of retirement savings in the US.
2. Due to the savings shortfall, seniors cannot access long-term care.
3. Instead of helping to ease this shortfall, life insurance policies add to the burden with demands for insurance premiums while the senior is alive.

Most investors in life settlements prefer large face value policies (more than $2ml) because they can deploy capital more efficiently but these policies are likely to belong to wealthier individuals who are financially secure. Laureola has a focus on smaller face value policies (less than $1ml), policies which are likely to have been bought by less wealthy individuals, the group most exposed to the retirement deficit described above. Life settlements provide a solution to these issues by providing a cash payout to the seniors and by shifting the burden of the insurance premium to life settlement investors. By investing in this asset class there is potential for:

1. Retirees to use life settlement proceeds to replace pre-retirement income and help maintain a dignified standard of living.
2. Frail and disabled persons to use life settlement proceeds to pay for long-term skilled nursing, subsequently reducing the burden on the shoulders of family or government programs.
3. The benefit of decades of premiums paid on a policy to be realised by an individual in need rather than forfeited to insurance companies.

An investment in life settlements can be an investment in the physical and financial wellbeing of senior citizens in the United States.

“By playing the role of an investor in the life settlements ecosystem, our fund enables many people get money from their US insurance policies immediately when they need cash, typically more than four times more than the contractual surrender value offered by the life insurance companies,” said Tony Bremness from Laureola Advisors.

For more information, please visit www.laureolaadvisors.com.

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