Scroll down for a discussion on Life Settlement Investment Product now Available within the Insurance Offers.
15% [COLOR=#1f497d]RETURN[/COLOR][COLOR=#1f497d]S[/COLOR] COMPOUNDING ANNUAL INTEREST 4,5, or 6 Year Terms May Qualify for Capital Gains Tax Rate Eligible for Qualified Fund[COLOR=#1f497d] [COLOR=Black]Transfers[/COLOR][/COLOR] [COLOR=#1f497d]No Stock Market ...
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Is it Legal? Don't you have to be registered to sell investments?? Just curious? Is it a Tax free return since it is the proceeds from a maturing Life Policy? How can I find out more?
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Yes it's legal, Warren Buffet invested $400 million into these according to Senior Market Advisor. Pooled life settlement program. Rate of return dependent on actual (instead of expected) deaths.
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I've gone to several STOLI-type serminars, most recently one given by Phillip Roy Financial - their claim is to be the biggest agency in the Solar System. After my due diligence, I am still a bit wary of what they promote. Many former Viatical merchants have switched over to the Life Settlement market.
LS's seem to break down into two strategies - or conditions:
1. Seniors possessing an unwanted or unneeded life insurance policy decide to sells life settlements to a third party company instead of surrendering it back to their default life insurance company. Seniors can go through a broker or directly to the provider (like Berkshire Hathaway, i.e. Buffet).
2. The other is structured from scratch where there is no pre-existing life insurance policy. These are a combination of life insurance settlements and premium financing arrangements. They are under scrutiny and being investigated by the NAIC and many individual state DOI's. It's the "premium financing arrangements" that have caught the eye of the regulators.
These arrangements go something like this: Find an elder senior, say an insurable 72-year old with a very high net worth to justify a multi-million dollar DB. Offer free insurance, "we'll pay the premiums" with loan financing. After two years we'll sell it to a 3rd party. Cha-Ching, it's Payday. The insured gets paid, the agent gets paid twice (commissions for the insurance and part of the sale), the packager gets paid and the 3rd party gets the DB when the insured passes to the great beyond. But what if the old guy lives too long or a 3rd party doesn't step in a buy the policy? Hmm. Why, the premiums are refinanced. It's obvious that someone ends up holding the bag.
Idaho has outlawed the sale of this brand of LS. TX has posted several consumer alerts as have others. Many state DOI's are reviewing the practice, including my state, CA.
However, to be fair, there remains a legitimate use of LS policies, especially to those seniors already holding an existing policy, but no longer with a use for the DB the policy provides or those who no longer wanting to continue paying premiums. This was the intended design of Life Settlement as an option to seniors.
Hopefully the "good" LS's do not get colored with the same brush as the "bad" ones. Stay tuned, folks.
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[COLOR=black]We have been offering Life Settlements to our clients for about 18 months now and they LOVE it. The returns are greater than 15% so you can do all kinds of things such as arbitrage on real estate, self directed IRA, income leases etc...In this market today--where are you going to find these kinds of returns with only minor risk being time? In our research Life Partners out of Waco seems to be the most reputable (and also a publically traded company) with the greatest returns because they fractionalize the shares.[/COLOR]
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Originally Posted by JS17
If it isn't Life Partners, who/what is it???? Not interested in Stoli type situation.
It is not life partners. It is not stoli, its an investment. Stoli's are where your clients take out a new policy and sell it on day one. This is an investment into an existing portfolio. The fund that runs this program was created by former LPI agents that saw the flaws in LPI and created a product to compete with it. Send me a PM if you want details on the firm.
If it looks like a duck, waddles like a duck, and quacks like a duck.....
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To be truly independent, an agent should not be dependent on a government bureaucrat for contracts or commissions.
If it looks like a duck, waddles like a duck, and quacks like a duck.....
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A STOLI is not what this thread is about.
A STOLI is when you the agent write a brand new life policy and sell it the same day it is issued. Most funds that buy these have dried up, Common price is about 3% of face to the client, but the fund will take about 20% of the agents commission. These deals are also referred to as BI deals or wet deals (cuz the ink of the paper hasn't dried before ownership changed)
What THIS thread is about is an investment product that you can offer to ANY client. The client is basically buying into a pool of policies or they can buy a portion of a single policy. These are all non-contestible policies that have already been purchased by the holding company (unlike other life settlement investments). The policies are wrapped with reinsurance to guarentee that the investors are paid on the specific date listed in their contract.
Life Settlement Investment Product now Available
Re: Life Settlement Investment Product now Availible
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