Insurance As An Investment Vehicle

Sep 14, 2008

  1. myinsurebiz
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    myinsurebiz Guru

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    While reading on on Life Settlements and Viaticals I ran across a few companies that paid up to 25% to 40% interest for contributing to a Viatical Funding Pool.

    This one company only buys Terminally Ill patients that have less than 2 years to live. They've checked these patients out - and they will die without a doubt. It might be 3 or 4 years - but eventually - they die.

    Anybody here ever thought of marketing these type deals OR investing in them?

    Thanks,

    Tom
     
  2. Mr. Bill
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    Mr. Bill Guru

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    Check further. Many insurance companies are offering discounted cashouts in order to avoid this very thing. You really don't want to be the advisor selling a tranche that doesn't work out. Be very careful.
     
    Mr. Bill, Sep 14, 2008
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  3. myinsurebiz
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    myinsurebiz Guru

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    I'm not thinking of selling them per se - I'm thinking of investing in them.

    Tom
     
  4. The Rabbi
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    I was introduced to a public company that took small investors, or large, and spread the money around different policies providing a better return. The average return was 16 + % over the 15 yrs in business. All the money went to a third party public company that handled the distribution of the policy proceeds on death. They had a parameter of 2-4 yr life span.

    It looks solid to me. You have to make sure of finding a legitimate company.
     
  5. joshril
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    joshril Guru

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    I have life settlement companies trying to get a hold of my life insurance book all the time...

    Are any of these companies legit?
     
    joshril, Sep 15, 2008
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  6. jimsthename
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    joshril...

    If you have a decent book of business, I would direct you to the life insurance settlement association's website to find legitimate companies. Most will provide good training, support and life settlement services
     
  7. InsuranceGuru
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    Insurance is not an investment vehicle. Insurance, by definition, indemnifies. That is to say, it makes right what goes wrong when a peril results in a loss. Insurance companies that make any sort of claim to the contrary should be watched very closely, as insurance is not meant to be "profited" from and will be treated in this way.

    You can always take a large sum of money and purchase a policy with a larger face amount that will pay out to your heirs free of estate taxes and the death tax. Other than that, insurance "investing" should be strictly limited to the purchase of stock in an insurance company.
     
  8. motoxxx
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    motoxxx Super Genius

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    I don't sell life insurance as an investment vehicle but I use a dividend paying whole life policy for myself as a savings tool and ocassionally as a bank. I don't think I would push what I do to my clients.

    Nelson R Nash and his Be Your Own Banker book is really cool but those types of concepts are not for everyone.
     
    motoxxx, Mar 3, 2009
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