The Collegiate Investment Contract is a mechanism that allows an investor to have exposure to the high yields of US Life Settlements while reducing probity issues and issues of scale required in direct investment.
Each Investment Contract is secured over a specific US Life Policy, or fraction of such, that has been independently verified as a suitable life settlement meeting our purchase criteria.
Policies are maintained and independently verified. Collegiate Life (Delaware) Ltd is a special purpose entity that carries out no other activity than the issue of these Investment Contracts. All activities for management and maintenance of the contracts and settlements are contracted out. Collegiate is what is known as a bankruptcy remote entity to further ensure security of the underlying assets.
One of the biggest risks with direct life settlement investment is that of longevity extension, that is the risk that the insured lives longer than expected. The Investment Contract enables Collegiate to reduce the longevity risk on individual settlements by re-insuring and spreading of risk across all the life settlements that it acquires, giving more certainty and less volatility than a direct investment, while maintaining close links to that individual life settlement.