Posted by The Policy Settlement Alliance on Wed, Aug 11, 2010 @ 09:41 AM
By Ronald E Ritter
Life settlement investments are truly a unique investment. The return is going to happen; the biggest threat is time and the occasional medical miracle. These type of investments are the purchasing of life insurance policies from senior citizens. With medicine being as good as it is these days, people are living longer and occasionally a new procedure can come along and extend someone’s life.
Can life settlement investments yield great returns, absolutely, and you can bet someone is going to make the money in between as well. There are expenses incurred after the purchase such as the premium payments. Constant monitoring and attention to detail are a must. The great thing about them is that with the right information they can be relatively predictable. The difficulty is the fact that people who have the will to live often do! So the only way to really invest is to invest in a multitude of different policies to spread the risk.
Currently large institutional investors and hedge funds are the ones doing the majority of life settlement investments. They have found ways to not only retrieve the returns but also use the life insurance policies to collateralize other investments.
To find out if your policy qualifies for a life settlement click on LIVEpdq today!
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by The Policy Settlement Alliance on Thu, Jul 08, 2010 @ 07:24 PM
By: Joseph W. Horner
Life settlement investments are for an individual investor looking to invest in the life settlement marketplace. There are three main ways that an individual investor can become involved in life settlement investments. One is through a bonded life settlement (for more about bonded life settlements see my blog – Bonded Life Settlements – Pros And Cons), the second is through a life settlement fund, and the third is through direct fractional ownership.
Any of the three life settlement investment methods allow an individual to invest in the life settlement marketplace and participate in an asset class that is not tied to the stock market or affected by changing interest rates and other worldly events. But like any investment, life settlement investments have their own unique pros and cons and should be evaluated carefully to make sure they fit within the framework of the individual’s investment strategy.
To learn more about life settlement investments 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 Wed, Jun 30, 2010 @ 11:09 AM
By: William L Curry
When talking about life settlement investments we need to identify all of the parties involved.
First, there is a policy holder. The policy holder is an individual who purchased a life permanent insurance contract. The insurance contract has a face amount also known as the death benefit. There is a cash surrender value which indicates how much the insurance company will pay for the policy and then there are the premiums which are paid to keep the policy going.
Second, there are third parties that see opportunity in purchasing life insurance policies. If a person no longer wants or can no longer afford their policy there are individuals who will purchase the policy for more than what the insurance company would pay. Life settlement investments are the result of these purchases.
Lastly, there are groups such as hedge funds and financial institutions whom create life settlement investments by purchasing many policies and creating portfolios with them. They believe the rate of return will be above 10% and closer to 20% with insurance companies backing the investment by way of the death benefit.
The only real losers are the insurance companies who will now pay out 100% of the death benefit and the original beneficiary of the policy.
For more information please click on LIVEpdq.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by Alice Hood on Wed, Jun 30, 2010 @ 09:02 AM
By Blaine M. Ferguson
Did you know that there are several different types of life settlement investments? The simplest is when an unbiased third party from the insured acquires the rights to the death benefit for an upfront cash payment in addition to all future premium requirements so that they become the sole beneficiary to the death benefit when the insured passes. One type of life settlement investments is when a number of life polices are grouped together as a single asset and sold to an individual investor that acts on behalf of himself as a single investor or stands in for a group of investors that pool their capital to obtain the asset. An offshoot of the above description is when life settlement investments are shared and looked at as a single asset and traded or swapped between investors for a gain or loss. Whether a profit is made on the policies held in the pool is dependent upon the premium requirements and also the death benefit return.
For more information please click on LIVEpdq.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by Alice Hood on Tue, Jun 29, 2010 @ 06:06 PM
By Jeff C Kennedy
The current market can effect life settlement investments in a number of ways. Here are two examples of how the market is affected today.
Like any other market, life settlement investments fluctuate. Sometimes there is plenty of money in the market to purchase policies, and other times the funds are just not available. In fact these investments were previously down due to the recent financial crisis. However, recent reports suggest a quick recovery in the life settlement market.
Another factor that effects life settlement investments is the criminal element. Reports of fraud and negative media reports can cause a panic effect and create uncertainty in the market. Although the life settlement industry has been plagued with bad press in the past, there have been regulations and consumer protection laws put into place to protect all, the industry continues to gain a more legitimate reputation.
For more information click the Livepdq link today
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by Alice Hood on Tue, Jun 29, 2010 @ 08:07 AM
By Michael H Wilner
Life settlement investments
in a Life Settlement Policy requires an understanding that seniors are living longer and may not pass away within a couple years of purchasing the policy. There is a huge risk of losing with life settlement investments if the purchaser relied solely on the life expectancy tables. If properly underwritten life settlement investments will rely on an illustration showing a level premium which will carry the policy far beyond the insured’s life expectancy.
Over the years this type of security has become more popular with a secondary market that will guaranty liquidity. If a policy is sold after securing the transaction the purchase price will be more than the original price due to the fact the insured is now older and closer to their mortality. Access to the life settlement investments strategies is limited. Investors that are not well informed can be misled and need to acquire as much knowledge as possible before entering into an agreement.
Click our Livepdq link today so that we can help you with your life settlement, life insurance and annuity needs.
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 @ 07:17 PM
By Stephen R. Bathon, CLU, ChFC, AEP
Life settlement investments
have become popular with investors for several reasons. To begin with, they are considered to be a non-correlating investment. In other words, life settlement investments are not securities and they are not real estate. They are a new and completely different kind of investment strategy.
People who invest other people’s money are generally limited to real estate, securities and commodities. Pension fund managers, investment brokers, hedge funds and banks are always on the look-out for better ways to make money. Diversification in investing is of great importance as similar investments might suffer similar fates should the market decline. If one invests in two different car companies, they run the risk of both investments failing if the price of gas goes to seven dollars a gallon. The more cautious investor might invest in Ford Motor Company as well as a company that made buses and trains for public transit. Put your money in coffee, but hedge your bet with tea. That way, if one proves to be bad for your health and people stop buying it, the other will double in sales. People will drink one or the other when they get up in the morning.
Life settlement investments, like tea vs. coffee have become a hedge. Investors like the potential returns (death is certain) and they like the fact that it is not in any way tied to real estate or securities. Life settlement investments, however, can fail like any other investment. If, for example, people start living to age 105, the settlement industry might be in trouble. That investment, however,is not tied to the value of homes and the stock market. Each of the three investments is independent of one and another.
Having another diverse place to make money, where the risks can be controlled to some degree by good underwriting and business sense has made life settlements investments very popular with people who manage large sums of money.
For more information please click the LIVEpdq.
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 @ 07:16 PM
By Stephen A. Bailey
Life settlement investments - Is there a way for you, a consumer, to invest? Without the direct purchase of life insurance policies, where you would invest in just one or two policies and face long time spans before realizing returns, the market of longevity can be lucrative still, because the returns are attractive overall. This is a fixed income investment and when many policies are in a pool, the volatility is low.
Interest is growing for life settlement investments, because of it's safety and steady returns. However, the market is now dominated by very large and heavily capitalized firms and institutions which include linked insurance (securities) funds. Insurance companies themselves and private equity funds are also ways to invest. Investing directly in life insurance polices can be a risk with the administrative burdens associated with it.
Life settlement investments are called synthetics, since it is not investing in actual, physical life policies. Synthetic investing gets away from "due diligence" required with a physical policy thereby giving more diversification to the investor. Some of the funds can pick and choose the ages, gender, life expectancy and even certain regions where they want and thus get the kind of diversification they want. More more information on this click LivePDQ here.
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 @ 06:48 PM
By Stephen A. Bailey
Life settlement investments
- something for you to invest in? Since much of the "Investment" money going into life settlements are more and more becoming institutional, the average investor is not necessarily going to find an easy path to invest money in life settlements per se. Some of the larger banks and insurance companies actually participate in life settlement investments for long term profit and stability of investments.
Individual investors investing in individual policies are becoming more rare but it does still go on. There are several experienced life settlement agencies, those with many years (10 or more) of expertise, that help the individual investor who wants to invest and pay the premiums of life settlement candidates. These are not usually small investments and may take several hundred thousands of dollars to be able to make life settlement investments and see them through for the long term. Assuming the policy purchased has been in force for two years or more, the investor may put the policy up for sale again and try and make a small profit.
This business of buying (and selling) policies, takes on a sophistication all of it's own. Only the most experienced agencies can handle these transactions with relative ease. But they must know what they're doing.
For more information see LivePDQ by clicking here.
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 @ 04:23 PM
By Ian F Smith
Life Settlement Investments - If done the right way... It can be a valuable financial planning tool. If life settlement investments are done with the wrong intent, then be prepared for adverse consequences. Before the life settlement market spawned into this multi billion dollar industry, many insured's only had a few simple options when they were faced with deciding whether or not to keep their insurance policies. They could just surrender for the cash value (insurance company wins). They could redesign the policy to self fund until the policy lapsed (insurance company wins). Or they could have reduced the death benefit to lower their premiums (insurance company wins).
Since the advent of the viatical settlement for the terminally ill, the settlement market has morphed into a highly leveragable financial marketplace. Life settlement investments have evolved into a new option for older insureds.
When faced with keeping your insurance policy or not you can view your policies as life settlement investments. The issue to be concerned with is that you don't want to go into this area with the intent of buying insurance policies just for the purpose of selling them as investments. The insurance companies are currently litigating hundreds of life settlement investments strictly because the insureds were either coerced to buy policies for the sole purpose of selling them for a profit or investors were paying the insured to apply for new policies. Also with the sole intent of just selling them for profit.
So if you have older policies that you no longer want or need for whatever reason, you can view them as investments. But don't go into it with the intent to defraud the insurance companies.
Visit our LIVEpdq webcast to keep informed.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.