Life Settlement Investment
A life settlement provides some incredible opportunities and flexibility that clients definitely appreciate. This is where an existing life insurance policy is sold to a 3rd party. The amount is normally for more than the cash surrender value but also less than the net death benefit. The individual gets to opt out of their policy and get a different one that suits them better while getting a better deal on the one they’re opting out of, and the company buying the policy will get a profit off the difference between the amount paid and the death benefits.
RedLeif Settlements is our full portfolio and program of life insurance settlements. While betting on any one single policy might be a bit of a risk, having a large group of them creates a very safe investment. Mortality rates don’t vary. No matter what the economic situation, the nature of aging will continue.
That means those policies that were bought will continue to mature with the full payouts going to the investors, who now own those bought policies. These are unaffected by commodity prices, the overall unemployment rate, or anything else involving the economy.
This is a win-win for all involved.
- The individuals who can’t afford their old life insurance plans or who want to change plans can get cash for passing their account over to RedLeif Settlements.
- Investors get the safety and consistent returns that come from large bundles of life insurance policies as they mature
This isn’t a new practice – it’s been available since 1911 and has stood the test of time exactly because all parties involved get some benefits of note.
Very Selective About Included Policies
The portfolio is able to project a simple interest yield of over 65% because they are selective about which accounts they buy out. This special care is what makes RedLeif Settlements such a fantastic and reliable investment.
Some Stats:
- The average bought policy matures between 4 and 7 years
- The average age of the insured is 78 years old
- A strategic balance of genders exist in the held policies
- There are 5-10 policies per portfolio
- Balancing is carefully managed by professionals
Warning:
No one can know for sure how an investment will perform and past results don’t guarantee future ones. Figuring out the exact rate of return is impossible as the rate varies based on how long it takes accounts to mature and pay out. Always weigh the potential risks against any potential rewards before investing.