In a volatile market, family offices need smart wealth strategies. Life settlements offer stable, risk-adjusted...
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Life Settlements Contract Locator
Life Settlements Contract Locator
Hedging Against Market Volatility:
A Guide for Family Offices
New York, February 5, 2025
Market volatility continues to be the more considerable hurdle for family offices focused on wealth preservation, growth, and intergenerational planning. Amid rising uncertainties in traditional asset classes, life settlements serve as a reliable alternative, offering attractive risk-adjusted returns with lower market correlation while maintaining a more stable return profile compared to equities.
Understanding the Current Market Landscape
The “super bubble” threatens key markets.
Equities
S&P 500 valuation levels echo pre-crash scenarios, heightening risks.
Real Estate
Overvaluation and rising interest rates erode growth potential.
Bonds
Higher rates compromise their historic safe-haven appeal.
These factors, coupled with geopolitical instability and record global debt exceeding $300 trillion, highlight the need for non-correlated asset classes like life settlements.
Why Life Settlements Make Sense for Family Offices
Life settlements stand apart due to their stability, low market correlation, and ESG-compliant impact. Here’s why family offices are turning to this hidden asset class:
- Non-Market Correlation – Immune to stock market swings and geopolitical disruptions.
- Predictable Returns – Actuarially driven cash flow and clear timelines.
- Diversification and Safety – Spreading assets across policyholder demographics and policy types.
Tax Efficiency – Structuring acquisitions through SPVs optimizes tax outcomes.
Real-World Performance
During the 2008 financial crisis, life settlement portfolios delivered stable 10–15% returns, outperforming equity-heavy portfolios that saw losses exceeding 35%. Similarly, during COVID-19, these assets maintained consistent performance amidst market turmoil.
Action Plan for Family Offices
-
Step 1
Consult Titan Horizon Group to assess risk tolerance and historical performance metrics. -
Step 2
Titan Horizon Group locates a portfolio that aligns with your objectives. -
Step 3
Titan Horizon Group performs rigorous actuarial and legal due diligence on the target portfolio. -
Step 4
Ownership & Beneficiary rights of the underlying life insurance policies are transferred to your family office. -
Step 5
Titan Horizon Group partners with NorthStar Life Services to provide ongoing and post-sale insured tracking and policy management services.
Life settlements present a robust solution for family offices to hedge against volatility, preserve wealth, and achieve stable, long-term growth.
Take the next step
Schedule a consultation with Titan Horizon Group
Start building your life settlement portfolio.
Sources:
Historic market volatility events and strategies to hedge investment risks: https://www.chase.com/personal/investments/learning-and-insights/article/historic-market-volatility-events-and-strategies-to-hedge-investment-risks
Emerging markets are losing their attraction for family offices: https://www.ft.com/content/6388c8e8-d2c4-49ef-8e07-3230a609cff3
As interest rates drop, ultra-rich investors are giving up their cash for risk assets. Here’s what they’re buying: https://www.businessinsider.com/interest-rate-cut-ultra-rich-investors-family-offices-portfolios-buying-2024-9
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