Our Core Competencies

Policy Acquisition

Acquiring policies in the secondary market for life insurance requires a clear strategic plan with practical expectations. Noble Life Capital diligently acquires polices through a network of licensed life settlement providers. Each policy is put through a rigorous evaluation process which results in a filtration whereby only polices designed to protect our clients are considered for purchase.

Due Diligence

The most important component to any investment is the underlying asset. This is no different with life settlements. Each policy that we acquire goes through an extensive due diligence process. Our industry experience enables us to achieve the overriding goal of sufficiently going through this due diligence process in order to ensure clean passage of title to the purchaser and seek to eliminate any party potentially making a claim against the policy after it has been transacted.

Policy Analysis and Valuation – Reducing Longevity Risk

Too many people in the life settlement industry simply focus on achieving a certain rate of return at the insured’s life expectancy, and that’s it. Noble Life Capital not only focuses on achieving strong returns, but we also want to protect our clients by utilizing our industry knowledge. We analyze policies using a combination of probabilistic and deterministic models to better understand each policy’s premium sensitivity and the effect premiums can have on the policy’s rate of return beyond the life expectancy period. This is otherwise known as evaluating the policy’s longevity risk.
Thomas Schantz Life Settlements
The goal is to reduce the longevity risk wherever possible. While we are confident that the third-party underwriters that we recommend are some of the most reliable in the industry, policies can still mature later than the life expectancy just as they can mature earlier than the life expectancy. We use probabilistic models to analyze the mortality of the insured on each policy. These mortality rates are determined by using third-party underwriting in combination with the VBT actuarial tables ⁽¹⁾. This provides estimated probabilities of maturity at each monthly interval, enabling us to purchase policies with stronger confidence levels in longevity for our clients. This means that if a policy does not mature by the life expectancy, the policy should still have a reasonable likelihood to achieve a positive return while continuing to pay premiums beyond the life expectancy period.
Thomas Schantz Life Settlements
Taking these extra steps to analyze each policy helps to provide our clients with not only competitive returns, but helps to reduce longevity risk, which goes beyond a simple industry valuation approach.

Premium Optimization and Servicing

The benefit of our industry experience doesn’t stop with the acquisition of a policy. After a policy is purchased, premium payments need to be sent to the insurance carrier to make sure that it doesn’t lapse. This role can be streamlined through the use of a Servicer. Our team has the experience to act as a Servicer in order to maintain a policy and make optimal premium payments. Many life settlement Servicers refer to premium optimization as the process of calculating minimum premiums. This is almost always done using an industry standard pricing model rather than accepting the insurance company’s level pay premiums as illustrated. Noble Life Capital takes premium optimization one step further.
Thomas Schantz Life Settlements
We perform a comprehensive review of each policy and break down the nuts and bolts using our own proprietary models. Certain products have complex features that cannot be optimized by standard pricing software. We find opportunities that standard pricing models cannot accommodate and in some cases the technical analysis necessary to optimize these polices is beyond the capability of most providers and servicers. Additionally, Noble Life conducts follow-up carrier calls to validate cost of insurance (COI) charges and verify that the carrier’s COI calculations are consistent with our analysis. In some instances we will request illustrations that support our internal calculations.
Thomas Schantz Life Settlements
Noble Life Capital engages a third party tracking agent to monitor the status of the underlying insured on each policy. The tracking agent typically reaches out quarterly to the insured or the insured’s designated contact to assess the insured’s health and whereabouts. In addition, the tracking agent uses web based searches and databases to identify a policy maturity. Once a policy has matured, Noble Life will assist in obtaining the death certificate and filing the claim with the issuing insurance company.
Thomas Schantz Life Settlements
Working with Noble Life Capital gives our clients additional confidence in their assets being properly maintained until maturity, and that their economics can be maximized while doing so.

Underwriting

The selection of life expectancy underwriters is a key component to a successful life settlement acquisition since any expected return is contingent upon the maturity of each life insurance policy ⁽²⁾. There are numerous life expectancy underwriters that have come into the market over the years, and identifying those that can be considered the most reliable is typically based upon: years of experience in the industry, knowledgeable staff, robust systems, volume of cases underwritten, amount of data that can be analyzed, and a willingness to submit that data to outside actuarial firms to conduct actual-to-expected studies.
Thomas Schantz Life Settlements
Today, many life settlement underwriters have tens of thousands of data points and offer transparency about their process. By having an understanding of certain medical conditions combined with utilizing some of the most reliable underwriters in the industry, we can provide our clients with increased confidence in this asset class.