Where Can I Buy Life Settlement Policies?
- Thread starter marcger24
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- 4,686
What the heck is a Life Settlement Policy?
- 11,997
I really don't think you know what you're getting into. If you don't mind my asking, what's the attraction?
There are a number of life settlement brokerages and if you spent some time on google you could probably find some that way, but that's what you're looking for, a brokerage. I believe there are a few different companies that sell them as investments and that might be more up your alley. One company actually carves up the policies so you buy a piece of each of a number of policies, that way if a few live longer and a few live shorter it's not as lopsided as it would be if you had one policy and the insured lived forever.
To answer your question steve, life settlement is when you basically take someone in compromised health that has a large face amount of insurance (usually a minimum of 500k, but that's on the very low end) and then in exchange for $X the insured no longer pays the premium and the person buying the life policy becomes the irrevocable beneficiary.
There are a number of life settlement brokerages and if you spent some time on google you could probably find some that way, but that's what you're looking for, a brokerage. I believe there are a few different companies that sell them as investments and that might be more up your alley. One company actually carves up the policies so you buy a piece of each of a number of policies, that way if a few live longer and a few live shorter it's not as lopsided as it would be if you had one policy and the insured lived forever.
To answer your question steve, life settlement is when you basically take someone in compromised health that has a large face amount of insurance (usually a minimum of 500k, but that's on the very low end) and then in exchange for $X the insured no longer pays the premium and the person buying the life policy becomes the irrevocable beneficiary.
- 4,686
Thanks Josh....sorry I was being facetious there---asking what a "Life Settlement Policy" was.
I'm pretty well informed on Life Settlements though.
I'm pretty well informed on Life Settlements though.
- 11,997
I thought that might be the case. Either way there are thousands of people a day that visit the forum and at least one or two might wonder what's being talked about.
Josh above is incorrect. In the secondary market, a life settlement broker represents the seller of a policy under the regulations in most states that regulate the business. The type of business which can purchase policies legally is called a life settlement provider. A retail/individual investor would be wise to seek the advice of an expert in the industry and to acquire policies through a reputable and licensed provider. There are exemptions in some states that allow a consumer seller to sell a policy (perhaps, one policy per year) privately and thereby "deal directly" but the complexity of a properly structured transaction and the analysis required to make an informed decision are not easily acquired. Start with the industry association's website (search for LISA) and that of your state's department of insurance (or similarly named regulatory body)
