How to Invest in Life Settlement Stocks
Life settlement policies, also known as viatical settlements, are really nothing more than life insurance policies that are sold to third parties. The party purchasing the life insurance policy continues making payments on the policy and then collects the settlement when the individual on whom the policy is written dies.At one time it was common for people with life-threatening illnesses (such as AIDS) to sell their life insurance policies in order to raise cash for immediate needs. Today, policies are often sold by the elderly or even by perfectly healthy individuals who, for one reason or another, no longer have need of a particular policy and would prefer the immediate cash.
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Instructions
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Check out the companies that offer cash settlement policies (or viaticals) for sale to individuals. Be prepared to pay more than the current cash surrender value of the policy, but at least 40 percent less than the eventual payout the policy offers. Only purchase policies that have been issued by well-known and financially-sound insurance companies. Check companies' ratings through the A.M. Best rating company (see Resources below).
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Advertise in newspapers and magazines, especially those aimed at seniors and those who might be ill and in need of immediate cash. Offer to take over the payments on whole life insurance policies and to pay anywhere from 25 to 40 percent of the policy's payout value.
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Attend conventions aimed at seniors and those concerned with health issues. Purchase a table or booth and pass out fliers and cards detailing your business of purchasing whole life policies.
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Place fliers and posters at retirement centers, senior centers, laundromats and other places where they will be seen. Make your name synonymous with the purchase of whole life policies in your area.
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