There is a topic few people like to discuss.
It's an affair that affects everyone, is incredibly sad for most and has been called one of the only two things that are certain in life.
But it also presents an opportunity for savvy investors.
If that sounds crass, take a moment to think about what happened to people during the Great Depression and, more recently, the Great Recession.
Yes, sometimes the inevitable passing away of people can pay off--both for those who pass and those who help them make their time on Earth more pleasant, interesting and stable.
If all this seems like a little too much to comprehend vis-a-vis your investment strategy, you probably haven't heard of life settlements funds as an investment opportunity.
Life settlements, which began in the late 1980s, involve you investing in funds that buy life insurance policies from people who no longer need them or can no longer afford them.
You buy the policy for a price that is slightly more than its cash value, assume the monthly premium and then receive the cash value once the policy comes due.
Yes, you get paid when the original policyholder passes away. But it's not as horrible as an investment as it sounds.
Everybody wins when it comes to life settlement funds.
Even though life settlements present a win-win scenario, many financial advisers won't talk about them. Most simply don't know enough about them to provide any actionable advice. Some have never heard of them. And then there are those financial advisers who don't want to talk about them because life settlements don't involve any management, fees or meddling.
All you have to do is find an adviser who understands how life settlements work as an investment strategy--and then encourage her or him to pursue the interest with vigor.
The good news for you, the investor, is that life settlements have been gaining in popularity. Baby Boomers are growing older, and many have decided that they no longer want their life insurance policies (for a variety of reasons ranging from not needing them to not being able to afford the monthly premiums).
The popularity of selling life insurance policies among America's aging population means that there are many, many opportunities for investors to buy them--either individually or via funds that specialize in life settlements.
Those smart investors who do decide to put some of their investment dollars into life settlements realize many benefits:
- They get guaranteed payouts that tend to outperform the stock market
- They avoid the many ongoing fees associated with more typical investment opportunities
- They don't pay taxes until the policy comes due
- They get to add stability to their portfolios because life settlements are not subject to the ups and downs of the stock market, politics, global events or other outside factors.
Yes, there are many reasons people should be talking about--and exploring--life settlements as an important part of their investment strategy. Unfortunately, most people aren't talking about it.
You should be.
If you are ready to start the conversation, connect with us and let's talk about life settlements as part of your smart investment strategy today.