Life Settlements
What is life settlement?
A life settlement is a financial transaction in which the owner of a life insurance policy sells an unneeded policy to a third party for more than its cash value and less than its face value. Until recently, if a policy owner opted out of a policy by surrendering the policy or allowing it to lapse, the additional value was relinquished back to the issuing life insurance company. In some cases, an insured’s health may have declined since the policy was issued and the policy may be worth considerably more than the surrender value. Owners of life insurance policies that no longer meet their needs often choose to sell their policy in the Life Settlement Market.
Where can an investor receive an attractive rate of return while protecting their principal?
With the volatility of the stock market, real estate market and recent international and political instability, many portfolios have suffered a free fall, just when boomers are approaching retirement. Investors are looking for a diversification tool that is relatively safe compared to other types of investments and life settlements give individual investors an opportunity to realize the types of returns that only institutional investors have enjoyed.
Investors purchase the ownership/beneficiary position at a discount to face value. Berkshire Hathaway, Chase, GE Capital, Deutsche Bank and many other institutional investors have been the primary players for many years and have enjoyed safe, predictable, double digit returns. However, individual accredited investors can now participate by purchasing Fractional Life Settlements.
A life settlement is a stable value asset that provides consistent, predictable growth:
• Clear expectation of payment (protection of principal)
• Clear expectation of future value (no market risk)
• Certainty of event (maturity of the policy)
• Reasonable degree of certainty (as to timing)
Benefits of fractional life settlement investment program:
• Uncorrelated to any stock, bond, interest rate cycle, economic upheaval, political events, oil prices, etc.
• Policies are backed by America’s oldest and most financially sound life insurance companies
• Custodian accounts are available to convert your current qualified retirement plan
• Investor has a fractional interest and beneficiary rights of a single life insurance policy
• The yield on each policy fraction is known at the time of investment and double digit returns have been the norm to individual investors
For More Information, click here or call Brian directly at 317-852-9153.
