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Life Settlement Investments

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From Quick Guide: Settlements 101

Summary: Life settlement investing is when a company essentially buys an insured person's life insurance policy for about two-thirds of its worth before the insured dies. Decide whether or not to sell an acquired life insurance policy to an investor before dying with advice from an experienced financial adviser in this free video.

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By Patrick Munro
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Patrick Munro's affinity for investing and financial matters began more than 20 years ago with business education and service throughout the ranks of the banking, insurance and...read more

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Video Transcript

"This is financial adviser, Patrick Munro, talking about, what are life settlement investments? Life settlement is one of the newest vehicles that are available in today's world. Many older Americans have bought large life insurance cases, and insurance policies over time. Their health may not be as good as they had wished, and as a result of premiums going up on some of the policies. They wish to offload that policy, to an investor, and what will happen, is the investor will partner with the insured person, and give them a lump sum of cash, so that they can use it, while they are living. In return, the insured, once they die, the death benefit will pay to the investor. Normally, this is in a share of about two thirds, so the investor is making about a third in premium, for the service that they're giving the insured. This is Patrick Munro, talking about the new technology of life settlements, in the world of financial planning."

eHow Article: Life Settlement Investments

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