Life Settlement Investment Product now Available

[Mark]

I've personally have not made any money off of them in a long time. I'm about to stop offering them. They are just so picky as to what they will take in general.

They want them to live for 2 years, but be dead within 5. They want them to be over 65 or 70 and have hugh polices.

I know very little about them. I've done 2 of them, made some money, but no luck since.

 

[dgoldenz]

We did one last year that between the term conversion, policy sale commission, and new policy commission, came out to a nice six-figure sum.....another one we did a couple years ago was a ~$40k case all said and done. Both clients got a very nice settlement and were able to secure new policies to replace the ones that were sold and the money paid for a substantial part of the new premiums, so it worked out well for all parties. It is very hard to find the right circumstances in which to sell a policy though.

 

[rickygips]

Life settlement investment can be good for you and your family; you can shop for it in the internet so you can avoid pushy agents that can be annoying most of the time.

 

[lifesettlementadvisor]

Life settlement investment can be good for you and your family; you can shop for it in the internet so you can avoid pushy agents that can be annoying most of the time.

That is true, but 99% of the websites that you will find selling a fractional product are offering the LPHI product. There are about 5 other programs where instead of buying a fractional piece of 1 policy, you are buying a fractional piece of a pool of policies, spreading out your risk. These are usually registared as a security.

 

[JS17]

There are about 5 other programs where instead of buying a fractional piece of 1 policy, you are buying a fractional piece of a pool of policies, spreading out your risk. These are usually registared as a security.


True, you are spreading out your risk, albeit the risk is very small (people don't die???) but with a security pool you are dramatically watering down your return as well. The life expectancy can go over by 7 years and one can make a better return with direct fractional ownership vs a pool.

 

[joeblow]

Please explain THIS

There is a similar program to the above mentioned life settlements investment product. It is available immediately.

There is a re-sale life insurance company in Texas that offers:

[snip]
-qualifies for capital gains tax instead of ordinary income
[snip]

That's not at all my understanding.

 

[lifesettlementadvisor]

True, you are spreading out your risk, albeit the risk is very small (people don't die???) but with a security pool you are dramatically watering down your return as well. The life expectancy can go over by 7 years and one can make a better return with direct fractional ownership vs a pool.

I disagree. When selling a direct fractional ownership, the "historical returns" range from 14-17%. When selling a fractional piece of a pool, the returns are projected at the 12-14% range. While there is a bit of a difference, you should look at the call rate on the direct ownership. There is a very good chance you client will get a call in 5 years saying they need more money or the policy will lapse. With the pools, this rarely happens. I'd rather make a couple points less and not have to reinvest more money down the road.

 

[JS17]

I respect your opinion, however, I also have been an investor in Life Settlements for many years (which is why I now offer this investment to my clients). I personally have never had a premium call. Out of the hundreds of clients who do have this investment, only 2 have ever had a premium call and the amount of money they had to pay in both cases was under $400. The truth is, most (75%)contracts mature on or before the "maturity" date, I personally am not willing to give the broker dealers an extra 3% commission to assume that risk. It only makes sense that when you have a middle man in ANYTHING your profit/roi is reduced. But as I will say to my clients, it is what YOU can live with not me.

 

[joeblow]

Re-Sale Life policies from the company are not pooled as a security. The clients are fractional owners as irrevocable beneficiaries. This company is not LPHI, but it was started by some former LPHI employees who have made their processes better and much more client friendly.

Some of the differences include:
[snip]

-commissions are 8% with overrides of 1% on agents you bring in as well.

Personally, I believe these processes to be much better than LPHI. My website has additional information as well as a link to sign up for a webinar to learn more about it. www*resalelife*com (sorry, it wouldn't let me add a link.)

Resalelife's website must be pretty expensive. My understanding is a 10% commission is pretty standard from Retirement Value. (10/1/1 - 10% , plus 1% overrides for two levels).

Also, resale, perhaps you'd care to comment on the recent I.R.S. Revenue ruling pertaining to Life Settlements investments?

 

[lifesettlementadvisor]

AIS out of Houston has a similar product as Retirement Value.

They start people between 10-13%