A Life Settlement is a transaction whereby an insured life sells the rights to their life policy (future proceeds) to a third party in return for a payment now (Typically higher than the Surrender Value, but lower than the Benefit). In the US, these Settlements are used extensively in the investment market as they are seen as uncorrelated to market fluctuations – thus making Life Settlements an excellent tool for diversification and hedging in a portfolio. According to the research thesis below, another major plus is the high expected yields received on these investments (anywhere between 8% and 16%). Regulations in SA currently prohibit the use of Life Settlements despite the many advantages available to an investor. This research thesis below investigates the inclusion of Life Settlements in the South African investment market as well as the possible impacts of Life Settlements on insurance and re-insurance firms. Although the thesis is relatively long, there are particular sections that present strong debate on this issue. Have a skim through. Do you think Life Settlements should be implemented in South Africa?