Nowadays, choosing an investment is easier said than done. With all the products sold by different financial institutions, it’s seldom easy to pick one. Some risks need to be put under consideration, if or not there is anything to gain, and what chances of losing one risks. Let’s focus on the easier bit you probably have already invested in and stand to benefit from – Life settlements; a financial arrangement that involves selling one’s life insurance policy.
Different from surrendering a life insurance policy, going the life settlement route guarantees a higher payout. This works through the aid of a broker, who negotiates the policy for auction through a secondary market of investors. Investors would then bid according to set criteria looking to benefit in the long term.
When the face value is high, and the expected end is less than 15 years, they would most likely offer a large payout. Also considered is the number of premiums they have to put in until the end of the life of the policyholder.
With all that said, getting a life settlement seems like a sound investment choice. But just to make sure you’re well educated before signing up, let’s explore some more how and why you should start considering the life settlement route.
Here are 5 Reasons why you should invest in Life settlements:
1. Easy to achieve
This is one of the things people always consider when looking at an investment. No one has the time to sit down and understand the concept of how each type of investments work. With Life settlements, it’s easy. Have a policy you no longer need? Then, all you have to do is approach a reputable broker, and they’ll do the hard work for you.
This is a noncorrelating investment. It is not tied to the stock market,interest rates or even word events..Life settlements are simply the sale of a life insurance policy to an institutional investment group that has been approved to buy said investments for the benefit of their investors.They put your money into a pool of 100’s or even thousands of policies and this pool will generate a return based upon the mortality rate of the pool. Berkshire Hathaway is one group that invest in life settlements.1 share of their stock was 104,000 5 yrs. ago today it is 280,000 and it keeps going up. We know the players where you can invest directly into the life settlements part of the funds.Call Global Life Settlements or your Appointed Partner if you want to research this further.Lots of people sell their policy and invest it in life settlements.We know of income generating funds Wealth funds all kinds of institutional fund that will let you in, with a recommendation*, for as little as 150,000 K. You must be an accredited investor*.
3. Get full access to the payout
Other investments would need you to leave the money with them first for a whole lot of reasons. Maybe to let it mature, or let it accrue interest, or what not. Wouldn’t it be nice if you just got the money right after your policy gets sold? With Life Settlements, that’s how it happens. This is very helpful in times of need and if you need quick liquidation for medical expenses or for that vacation you’ve long been planning.
Don’t have any plans to spend the money? Well, with full access to the payout you might just want to reinvest it. A good broker is always ready to offer financial advice in line with your needs and future goals. With proper planning, you’re on your way to being a steady investor.
5. Old age means a higher payout
This is what sets life insurance policies above all else. Most long term Investment arrangements require an early start to earn big in the end. Life settlements offer the best of both Worlds; it’s considered a long-term investment deal that yields a lot depending on the age of the policyholder.
Since the criteria depend mostly on the life expectancy, investors are most likely to bid handsomely, the older a policyholder is. Of course, other factors include the face value and amount of premiums they need to pay all throughout.
Investing in Life settlements does not have to be tough. With the right guidance and direction, you’re sure to land a good deal for your policy. Of course, it wouldn’t be possible without the help of a reliable broker. Global Life Settlements has been in the business for more than 15 years and has built up a trusted network of experienced negotiators. The company’s dedication to sustaining its clients through hard work and understanding assures only the best value for their customers. Their professional Life settlement advisors only aim to get what’s beneficial to their clients, because they understand the value of time and effort.