Value-Added Services For The Life Settlements Portfolio Owner

NorthStar’s fees are structured for each client based on the extent of the services we provide and the characteristics of the portfolio. Though a client may choose from our menu of separate services to meet its needs, it is our full-management, “turnkey” approach that enables us to make the greatest contribution to a portfolio’s success.

We offer a full range of portfolio management services to keep your insurance investments on a smooth, profitable path to success, including:

Life Asset Acquisition/Disposition Analysis and Servicing
Life Policy Servicing and Optimization
Life Insurance-Backed Note Servicing
Medical and Life Expectancy Monitoring and Analysis
Monitoring and Collecting of Death Benefit Proceeds
Financial Accounting and Reporting

Life Asset Acquisition/Disposition Analysis and Servicing
Buying and selling the right assets at the optimal time and price is essential to reaching your goals. NorthStar’s robust evaluation methodologies put policies under the microscope, examining factors that affect pricing and risk such as: ownership, financing structure, insurable interest issues, medical records, life expectancies, and arcane policy characteristics and assumptions. Our dynamic and proactive approach allows us to quickly move from “the trees to the forest,” giving the investor a complete perspective on the asset’s value to the portfolio.

Our acquisition due diligence includes data and document review and analysis, including in-depth auditing procedures second to none. NorthStar’s assembly of a pristine case package helps to keep portfolio owners fully apprised of their investments’ characteristics while simultaneously enabling us to properly service a life insurance portfolio.

Life Policy Servicing and Premium Optimization
NorthStar’s processes and proprietary analytical methods do more than protect the asset, they make a positive contribution to a portfolio’s IRR. While many life settlement servicing firms refer to “premium optimization” as the process of calculating premiums based on valuation models rather than accepting the carriers’ premium notices, at NorthStar we take the optimization process a step further.  We conduct an in-depth analysis of every policy to determine the actual minimum premium necessary to keep the policy in good standing.  Due to the complexity of certain product types, the actual minimum premium at a given point in time can be significantly less than the pricing model’s recommended premium.  NorthStar also 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. 

Life Insurance-Backed Note Servicing
Our team also manages portfolios consisting of notes or loans collateralized by insurance policies. We understand the complexities of these assets, including the repayment process. When appropriate, NorthStar provides the additional client, insured, and advisor contact needed to minimize risk and ultimately protect the underlying insurance assets.

Medical and Life Expectancy Monitoring and Analysis
The most important variable when determining a policy’s value is the life expectancy (LE) of the insured, which is based on his or her most current medical records and information. NorthStar’s underwriting due diligence does more than simply verify the receipt of updated records and reports. Our highly experienced underwriting team analyzes information to identify possible omissions, gaps, and incongruities in medical records and LE reports, empowering portfolio owners to make informed decisions.

Monitoring and Collecting of Death Benefit Proceeds
Significant delays between the insured’s death and insurance claim payout can deteriorate IRRs to investors. NorthStar strives to notably decrease the time between these two events through our expertise in insurance carrier processes, mortality tracking, and when appropriate, through maintenance of relationships with insureds and their advisors.

Financial Accounting and Reporting
Typically, life insurance portfolios are held in special purpose entities that require comprehensive accounting functions and are subject to annual audits. NorthStar’s staff of highly skilled CPAs and accounting support personnel can prepare specialized reports, perform reconciliations, and coordinate audit and tax efforts. We also offer treasury services in holding an entity’s liquid assets for the disbursement of premiums and expenses.