A life settlements broker says it has secured financial backing for settlements on policies with relatively modest face values.

Settlements For Life L.L.C., Memphis, Tenn., is seeking life insurance policies valued between $1 million and $3 million for purchase by institutional buyers.

The buyers have received fresh infusions of capital from banking sources and are looking to set up pools of money devoted to smaller policies, Settlements For Life says.

Buying large batches of smaller policies helps a buyer lower carrier and morbidity risk for an entire portfolio, according to David Pryor, national sales manager at Settlements For Life.

Settlements For Life says it also has some buyers interested in some policies with face values as low as $500,000.