Posted by Alice Hood on Wed, Jun 30, 2010 @ 10:57 AM
By William L. Curry
Bonded life settlements are a life settlement that have a guarantee built into it for the investor or purchaser of the contract. The guarantee is in the form of an insurance contract wrapper that protects the purchaser from a longer than usual, or expected, life expectancy (LE).
The reason some investors of bonded life settlements would want to purchase protection is because some contracts may require payments longer than the term they had expected. If an individual has an “LE” of 10 years and then lives 20 years the profits may be eaten away by the additional money needed to keep the insurance contract in force.
Bonded life settlements provide protection from excessive premium payments of the investor. The insurance on the life settlement will stop the premiums at the maturity rate the life settlement was purchased. If the insured lives beyond maturity the investor is protected because the secondary insurance kicks in to cover any additional premiums beyond the maturity date.
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Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by Alice Hood on Mon, Jun 28, 2010 @ 04:06 PM
By: Joseph W. Horner
Bonded life settlements
are life settlements that have a bonding company’s performance bond as a backing. For this reason they are considered an asset backed securities. Bonded life settlements have also been referred to as death bonds.
Bonded life settlements can be a good way to invest in the life settlement marketplace but like with any investment they have their pros and cons.
Pros – 1) Gives the investor access to the life settlement marketplace; 2) Gives the investor a fixed maturity date for their investment.
Cons – 1) The investor is forced to rely completely on the strength and underwriting of the bonding company. Research has shown that most of the bonding companies involved in this marketplace are off-shore chartered companies which do not fall under US regulation or oversight; 2) The investor as no direct ownership rights in the insurance policy and is potentially completely reliant on the bonding company for repayment of their investment; 3) A bond of this type is very illiquid and is not marketable on the US bond market; 4) The performance bond is costly and has a large impact on the potential return on your investment.
So whether you are thinking of investing in life settlements or bonded life settlements do your research to see what is best suited for your personal investing situation.
To learn more about bonded life settlements click on the LIVEpdq link now.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by Alice Hood on Mon, Jun 28, 2010 @ 04:05 PM
By: Joseph W. Horner
Bonded Life Settlements
are life settlements that were underwritten by a bonding company and are thus considered asset backed securities. Bonded Life Settlements are also referred to as death bonds. They are not traded on the regular bond markets.
Bonded Life Settlements work by having a bonding company underwrite the life settlement policy, and for a bond premium issues a performance bond on the policy to the investor. The bond is payable at a specified date in the future, just like any other bond. Should the insured live beyond the maturity date of the bond the bonding company would pay a predetermined amount to the investor.
Bond Life Settlements will typically have a lower return on investment compared to a non-bonded life settlement because part of the purchase funds are used to buy the performance bond.
To learn more about Bonded Life Settlements click on the LIVEpdq link now.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by Alice Hood on Mon, Jun 28, 2010 @ 04:04 PM
By Scott J. Dressel
When one hears the phrase bonded life settlements
they typically need to stop and do a little research. The words life settlement immediately make one focus on a senior individual who is no longer in need or unable to afford the cost of maintaining their life insurance policy premiums. Over simplified, bonded life settlements are the reverse of someone trying to sell a policy, it is some looking to buy an interest in a life policy. Senior Market Advisor magazine ran an article in their April 2008 edition written by Curtis Cole which does a decent job of providing an explanation of this type of investment. The article discusses the pros and cons of such an investment, addresses direct fractional ownership and how it correlates to bonded life settlements. Originally in the United Kingdom “death bonds” have supposedly been in existence for over one hundred years. In the US however this is still an emerging investment with little historical data to help one with an educated investment decision.
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Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by Alice Hood on Fri, Jun 25, 2010 @ 02:32 PM
By Amie M Wirth
The term bonded life settlements
is the term that is used to explain the purchase of a life settlement that is connected with a bond. This bond is sometimes reefed to the death bond as it is the polar opposite of life insurance. It is essentially a bond that is purchased on a single or small group of policies that was purchased as an investment tool by a small investment group.
Bonded life settlements pay out to the investors their agreed upon return at the expected life expectancy of the insured. This bond lets the investor know upfront what their return is going to be on their investment. Bonded life settlements generally elicit a lower return because of the cost of the bond that is taken out to cover the investment.
The downside of bonded life settlements is that the investors return is based on the bonding company being able to pay out the return at a given time and most of these bonding companies are offshore with no US regulation or oversight.
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Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.