GWG Holdings, Inc, through its subsidiaries ("GWG"), specializes in acquiring life insurance policies in the secondary market from seniors who no longer want or need their policies. Our strategy is to own the policies we purchase until their maturity and our goal is to generate returns greater than the costs needed to purchase and finance those policies. When GWG purchases policies in the secondary market we provide:
- Options for consumers beyond lapsing or surrendering their life insurance for its cash value.
- Opportunities for GWG to earn returns uncorrelated to the traditional equity, commodity, or real estate markets.
GWG, has been purchasing life insurance policies in the secondary market since 2006, evaluating over 39,000 life insurance policies and purchasing over $1.95 billion in life insurance policy benefits.
Benefits for Seniors and Investors
The secondary market for life insurance provides options to seniors who own life insurance policies when they no longer want or need the policy coverage. Here's how:
- Policies are purchased at a discount to the face value of the insurance benefit but more than their surrender value.
- Seniors sell their life insurance policies in the secondary market with the help of a life settlement broker, or if they choose, directly to life settlement providers. This regulated process is called a life settlement, and may provide the seller with greater cash value than would be received if they were to surrender the policy or let the policy lapse. The policy seller can then use the proceeds to pay immediate expenses, make their day-to-day life more comfortable, or take their dream vacation.
- The purchasing company (GWG Life) continues to pay the premiums in order to collect the full face value of the life insurance policy benefit upon maturity.
- By acquiring life insurance policies in the secondary market, GWG intends to continue building a diversified portfolio of life insurance policies.
Additional GWG Advantages
GWG's investments in the secondary market for life insurance may deliver significant advantages over other traditional investments. Here's why:
- The performance of life insurance policies is not correlated to traditional, external market influences such as real estate, equity markets, fixed income markets, currency, or commodities.
- Each life insurance policy is unique and not linked to any other life insurance policy. In addition, the life insurance policies within the portfolio are diversified demographically by age, gender and medical conditions.