Corporate & Securities Law

Life Partners Holdings, Inc., is a Waco, Texas based company that arranges for individual investors to purchase interests in third party life insurance policies. It was recently reported that Life Partners, Inc., a subsidiary of Life Partners Holdings, Inc., was subject to an investigation by the SEC regarding the operations of the subsidiary.  Life Partners has sold about $2.8 billion worth of policies to 27,000 clients.

Life Partners arranges for investors to purchase a fractional interest in a life insurance policy held by a third party, wagering that the insured will die before the policy matures - in which case the investor will collect the death benefits offered by the policy. 

The key to purchasing an interest in a life insurance policy is accurately estimating the life expectancy of the insured.  If the insured lives too long, investors not only fail to collect on the death benefits offered by the policy, but also are obligated to continue to pay the premiums on the insurance policy as long as the person is alive.  To the detriment of the investors, the insured often outlives the policy. 

A recent sample taken showed that the insured had outlived the policy in over 95% of the policies it issued.  Moreover, 65% had lived at least double their estimated life expectancy, and 35% lived three times longer than their estimated life expectancy. 

Eccleston Law represents individual and institutional investors to recover their investment losses caused by securities and investment fraud. Our attorneys also help victims of Ponzi schemes pursue recovery by submitting claims with receiverships established by the SEC or by assisting victims with the filing of a Theft Loss Tax Deduction with the IRS.

Investors who have lost money investing in an interest in a third party life insurance policy may be able to recover those losses through securities arbitration.  Please contact Jim Eccleston at the Eccleston Law Offices at 312-332-0000 for more details.