Life Settlements

[The Rabbi]

Life Settlements are a great investment. Warren Buffett invested $400 million in them. I have a contract with a company that takes small investors (min $50k) and gives them certificates of beneficiary of multiple policies. They have averaged around 15% since 1991. All the money goes into escrow with a public company who collects and distributes the proceeds. They enjoy a 70% investor retention rate.

[xrac]

Life insurers are "pushing back" against what they believe to be inappropriate settlement cases, a panelist said here at the Life Insurance Conference.

Some carriers, for instance, are filing lawsuits against originators of such cases, said panelist Maggie Mitchell, vice president-advanced markets in the Denver office of ING, a unit of ING Groep N.V., Amsterdam.

Typically, these lawsuits charge misrepresentation or failure to prove insurable interest, she said at the meeting, which was co-sponsored by LIMRA International, Windsor, Conn.; LOMA, Atlanta; Society of Actuaries, Schaumberg, Ill.; and the American Council of Life Insurers, Washington.

"We've also terminated agents for cause--if all of the agent's business is settled, for instance,” Mitchell said. “We've also turned some agents over to the licensing authorities."

http://www.lifeandhealthinsurancenews.c ... STOLI.aspx

[The Rabbi]

There's no doubt the insurers are going to fight. They depend on the lapses. I remember hearing that AIG bought these policies issued by other carriers.

[MattGRosenthal]

I must say that I agree with the statemnet that, "Insurers depend on lapses". If I had the money I would love to purchase policies on everyone!

I personally come from a large family, and have an aunt Mary (my mom's aunt) who "made a living" on life insurance. When her mother died in the 70's she received $150,000 in Life Insurance. She took a big part of that money and used it to buy policies on almost every family member she had (in fact she has one on me for $50,000). Now granted in return, she does pay for ALL of the funerals that she has a policy on the person for, but she hasn't worked as long as I've known her. Basically, I guarantee you we attend at least 2 funerals a year that she has policies on the family member.

Simply put, it just makes sense! I'm sure that every one here has attended at least 2 funerals a year, and if you made 50 to 100 thousand for everyone you attended, you would still make a living after you paid all of the premiums.

[xrac]

I must say that I agree with the statemnet that, "Insurers depend on lapses". If I had the money I would love to purchase policies on everyone!

I personally come from a large family, and have an aunt Mary (my mom's aunt) who "made a living" on life insurance. When her mother died in the 70's she received $150,000 in Life Insurance. She took a big part of that money and used it to buy policies on almost every family member she had (in fact she has one on me for $50,000). Now granted in return, she does pay for ALL of the funerals that she has a policy on the person for, but she hasn't worked as long as I've known her. Basically, I guarantee you we attend at least 2 funerals a year that she has policies on the family member.

Simply put, it just makes sense! I'm sure that every one here has attended at least 2 funerals a year, and if you made 50 to 100 thousand for everyone you attended, you would still make a living after you paid all of the premiums.

Tax free! Some people think this is morbid but I think it is smart. I have encourage my kids to buy life insurance on me. It has a guaranteed return and tax free. It will pay off it is just a matter of when.

[The Rabbi]

Where's the insurable interest? And what's this have to do with life settlements anyway. My posting has been hijacked. Call the Navy, Marines and Coast Guard.

[xrac]

http://www.lifeandhealthinsurancenews.c ... STOLI.aspx

[Mr.Insurance Dude]

I would give life settlements ago but I dont have that kind of free money right now :(

[onie]

Life settlements is any human usable.

[robsam]

This investment (Life settlement ) can be a good investment but as I think one can invest on this plan only when he is having a large amount of money in his pocket and huge bank balance .It can be money Laundering risk as experts says .Guys like warren buffet are the richest person . We should consider a normal human being for settlement plans . Please give any genuine example. Thanks in advance



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