Reputable Life Settlement Firms

Discussion in 'Life Settlements Forum' started by pfg1, Jan 21, 2017.

  1. pfg1
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    pfg1 Guru

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    Can anyone point me to some firms that are above board? I have a client that is potentially interested in some non traditional investments, life settlements being something we want to look into.

    Thanks
     
  2. goillini52
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    goillini52 Guru

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    I always thought life settlements was a ghoulish way of doing business...investing in someone's death. But that's just me.

    I'm sure that I've seen Coventry advertise for life settlements. They're a very familiar name in health insurance. If I were going to do it, I'd probably start there.
     
  3. somarco
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  4. pfg1
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    pfg1 Guru

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    I agree, that is why I was asking. I explained to him how they work and told him to definitely beware. I've seen a couple of deals go south in that arena, and they didn't end well.
    I almost signed up with a company 5 or 6 years ago. Some guys I knew were selling it and talking it up. Something in my gut told me to hold off. So glad I did, the scam didn't take long to get caught. The bad part... not only did the clients lose their money, everyone involved was in trouble, even the staff working for the company.

    I know there are some good companies out there, just trying to learn what I can so that I can help him avoid a potential misstep...should he decide to pursue that.

    Thanks for the links.
     
  5. Josh
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    I'd talk to welcomefunds.Com. I've talked with them a lot over the years and never did anything with them, but they seemed legitimate.
     
  6. somarco
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    VALIC was a big player in the viatical (life settlement) business years ago. I don't believe they are involved any more.

    Go back 10 years, maybe longer, and it was essentially unregulated. Not really insurance, not an investment. I looked at a company that focused on non-conforming viaticals. These were policies still in the contestable period (less than 2 years old). Much more risky than conforming policies but also offered higher gains in double digits.

    I looked at them but never pulled the trigger. There were local agents selling them. Advertising (in big print) 18% return. The DOI couldn't touch them at the time since you did not need a license. They weren't securities either. It was like the wild west.
     
  7. Tahoe Ray
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  8. walthamny
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    I had few clients ask this and I advised them to use a hedge fund that invests in these. Let the hedge fund do the research and diversify the risk. I think anyone with less than 1 million in investable assets should not consider life settlements. In chasing a higher yield, you are investing in a asset that cant be sold easily.
     
  9. JNugent2
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    JNugent2 New Member

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    The opportunity (and sponsors) are vastly different from years past; Many of the "bad characters" have either been regulated out or simply could not operate to the present standards.

    That said, it's not advisable for individual retail investors unless they are investing into a fund. If your client is an accredited investor and has the ability to meet the minimum fund investment, there are a few platforms available. I will send you a PM with additional information.
     
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