The life settlement — an offshoot of the viatical life settlement market of the 1980s — is one of the many alternative investment assets that institutional investors bring into play for decades in their portfolio. They mainly use this asset class during long-term bull cycles as a risk hedging strategy and diversification tool, to enhance the overall performance of their investment portfolios. It might be helpful for financial professionals helping clients think about their life insurance policies to know how international players. such as European hedge funds, see the advantages and disadvantages of this alternative asset class.