The crypto industry is expanding day by day. Every day we see a new blockchain-based project being covered by crypto news outlets and websites. In this blog post, you’ll know about an all-new longevity asset-backed security token called ‘’Life Token.’’ Investing in longevity brings you a lot of benefits, as they are life contingent and don’t rely on any financial event’s movement to achieve a return. But before we get into details, it’s important to understand what is life settlement.
What is Life Settlement?
A life settlement aka senior settlement refers to the sale of an existing life insurance policy to a 3rd party, it can be an entity or a person other than the company that approved and issued the policy, for cash that is more than the policy’s surrender value offered by the insurance company but less than the face amount or net death benefit. The entity or person buying the life settlement becomes the new beneficiary and owner of the insurance policy. Returns are estimated based on the carry cost, acquisition price, and the net death benefit.
Seniors can take advantage of repurposing their life insurance’s value by selling their unneeded, expensive, or unwanted policies for cash that can help them meet their immediate cash needs in retirement.
What Do Life Tokens Offer?
Life Tokens, the first longevity asset-backed security token, are secured on the blockchain with extra liquidity options. It offers more investor access to this institutional grade asset class, making it easier for investors to participate. Life Tokens denote investor interests in a fund holding a huge portfolio of life settlement policies. They use the Ethereum blockchain to protect investor’s interests, rights, and ownership. Moreover, token holders take advantage of the improved liquidity and security not usually found in common alternative investment offerings.