There are a number of opportunities for arbitrage stemming from the fact that a sizeable percentage of US life insurance is under-priced. For years, competition for market share among large and well-capitalized life insurance has driven down premiums. As a result, the cost of many policies is not indicative of their actual value (insurers assume that the majority of these policies will lapse or be surrendered before a death benefit is ever paid). An additional opportunity exists among policies on insured's with shorter life expectancies than initial underwriting projections. Because insurers cannot adjust premiums when an insured's health declines, purchasing policies where there has been a change in life expectancy can capture significant value.