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What are life settlements?
The sale of a life insurance policy from one person to another.
How does that make money?
The purchase price is much less than the face value of the policy. So, a 3 million
dollar policy might be sold for 1.5 million and when the investors collect they will have doubled their money.
Why
would anyone sell their life insurance?
They would rather have the cash and their benficiaries don't need it.
Why would I invest that much into one policy?
You don't. The policies are fractionalized to spread
your investment over several policies and share ownership of each policy with other investors.
Why haven't
I heard about this before?
The banks and institutions have been doing this for a long time but haven't told us about
it. Now, a few companies are making it available to individual investors.
Also note:
It can be part
of an IRA.
It has always paid off even during the great depression.
Transactions are regulated by the
Department of Insurance.
Want to talk?
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