Best Company To Sale Fractional Life Settlements With In Texas?

proadvisors

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Looking for good contract AND a compliant
company that is not fraudulent.

I just sent in paperwork for Life Partners but
after reading a lot of stuff I think I want to go
another direction!
 
Re: Best Company To Sale Fractional Life Settlements With In Texa

That is like asking...."what is the best company to buy heroin from?"

All fractional are garbage investments that will hurt your clients. Life Settlement investments only work once you have reached at least 300 lives.
 
Re: Best Company To Sale Fractional Life Settlements With In Texa

What you said there makes no sense. If I have a client with 100k and we buy 6 fractional settlements at 15k each and all the clients are over 80 with impaired health then common sense says that at least half of them will probably die within a few years.
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I have looked into the life partners thing a little bit more and
it seems some major players bought the stock short then started a negative publicity campaign to manipulate stock price. Also the 2 investors that filed suit got sold in a improper way by the agent.
That happens with every company. Also their has been no class action suit filed because the lawyers can't find enough people who want to do it.
 
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Re: Best Company To Sale Fractional Life Settlements With In Texa

I've only been studying Life Settlement investment products and actuarial tables for the past five years -- obviously you know what you are doing, you have some lucky clients.
 
Re: Best Company To Sale Fractional Life Settlements With In Texa

Also their has been no class action suit filed because the lawyers can't find enough people who want to do it.

Really....

Investors to get $7.7M from insurance firm after shutdown

Travis County state District Judge Stephen Yelenosky shut down the company last May after a request from the State Securities Board and Texas Attorney General’s Office. The state accused the firm of securities fraud and deceptive practices in selling life-settlement investments.
 
Re: Best Company To Sale Fractional Life Settlements With In Texa

I am always open to education. However your average 81 year old in GOOD HEALTH has a 50/50 chance of living to 85.

If you have a 81 year old in bad health whats the probability.

Furthermore if you have 6-10 in bad health whats the probability?

In response to the Travis county what does that have to do with life partners?
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What has more risk a mutual fund in the worst economy since the great depression or a life settlement in your opinion?
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ALSO LIFESETTLEMENTADVISOR


so what would you suggest if I don't want to get a series 7?

I have been thinking about taking the 7 but frankly all the regulation doesn't seem worth it. I think life settlements are
great and you do as well obviously.
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I am new to this and actually have not sold a single life settlement yet. I am looking to get into it. I feel its a good product to add
to the FIA'S I market.
 
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Re: Best Company To Sale Fractional Life Settlements With In Texa

The SEC has filed TWO Wells notices against LPI. If you do not know what that is, I highly recommend you look it up before you sell the product. But it is not a negative marketing campaign, it is the government coming after them.

If you do not have a 7, than you should not be selling investments. If you do not have an insurance license, than you should not sell insurance.

Legit life settlement investments require the proper licenses.
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The majority of life settlements on 81 yr olds are on insured that are in good health. A healthy 81 yr old male will have a life expectancy of around 6 years. This shows a 50% chance of the insured maturing between 81-87. There will be a 43% chance of maturity between 88-93. Buying 10 of these only dilutes the numbers in your favor by 10 bips.

What you need to note is how the fractional products work. You do not receive medical information, but just that an LE came in at X. You do not receive the probability tables nor do you see if they are healthy or if they are ill, why and what the probability of recovery is. At the same time, once the insured has lived past the LE mark, the return on the investment starts to dramatically decrease. If you sell the product assuming a 12% IRR on the investment against a 5 year LE, once it hits year 6, it will be about 9%, year 8 puts it below 5%. You need high number of lives to give you a proper distribution against this longevity risk. Finally, fractional investments only reserve a certain amount of premiums, once that is depleted (usually LE +1 or 2) than they do premium calls to investors. That means that your investors have over a 30% probability of getting a call asking for another 10K+
 
Re: Best Company To Sale Fractional Life Settlements With In Texa

Fixed indexed annuities are basically investments without risk.

IUL is basically a better version of vul in my opinion.

I will look into the wells notices.

Actually ALL of the insureds on which you can buy a
fractional on are in bad health. You can read what their
health is and exactly what the problems they have are.

I don't know if that was the case before but now all that
information in available.

I read one the other and the insured had about 4 serious health
issues. I would say a 50% chance of a 12% return in pretty good.

I use to sale mutual funds and those funds all averaged 12% over certain time periods. I think a fractional is considerably
better than the funds I use to sale.

There is also a secondary market for fractional LS where you can sale yours for all the money you have put in basically meaning you can get all your principle back if you feel the
investment no longer suits you.

I WOULD HOWEVER BE WILLING TO GO TAKE MY 7 IF I CAN DO BETTER FOR MY CLIENTS. CAN I DO THAT WITH YOUR FIRM AND
BE SPONSORED?
 
Re: Best Company To Sale Fractional Life Settlements With In Texa

The SEC has filed TWO Wells notices against LPI. If you do not know what that is, I highly recommend you look it up before you sell the product. But it is not a negative marketing campaign, it is the government coming after them.

If you do not have a 7, than you should not be selling investments. If you do not have an insurance license, than you should not sell insurance.

I believe you meant to say that you should not be selling "securities", not investments. Of course, depending on the product being offered, you could also be registered with a 6, 22, 42, 52, 55, 62, 72, 79, or 82. You would also need any applicable state registrations (series 63).

Legit life settlement investments require the proper licenses.

This really depends on the state of domicile of both the person offering the product and the investor.
____________

The majority of life settlements on 81 yr olds are on insured that are in good health. A healthy 81 yr old male will have a life expectancy of around 6 years. This shows a 50% chance of the insured maturing between 81-87. There will be a 43% chance of maturity between 88-93. Buying 10 of these only dilutes the numbers in your favor by 10 bips.

What tables are you using? My numbers how that an 81 year old male at 100% has a projection of just over 12 years. An 81 year old male doesn't drop to 6 years unless they are around 300-350%.

What you need to note is how the fractional products work. You do not receive medical information, but just that an LE came in at X.

If a company doesn't provide detailed information, not just 3 lines, or won't show it to you, don't sell for them.

You do not receive the probability tables nor do you see if they are healthy or if they are ill, why and what the probability of recovery is.

Again, if they won't show, don't sell.

At the same time, once the insured has lived past the LE mark, the return on the investment starts to dramatically decrease. If you sell the product assuming a 12% IRR on the investment against a 5 year LE, once it hits year 6, it will be about 9%, year 8 puts it below 5%.

This is predominantly a function of the premium to face ratio, and as a result, can only be projected based on premium projections for each particular policy. There is no way to accurately generalize these numbers.

You need high number of lives to give you a proper distribution against this longevity risk.

The more lives the better. However, current trends show that a pool of only 10 lives can cut the standard deviation, comparing realized present value as a percent of expected present values, in half. Additionally, the confidence level with a pool of ten lives would range from approximately .69 SD to 1.83 SD, which only improves to .88 SD to 1.16 SD with 100 lives. It all comes down to whether or not the investor in being adequately compensated for the risk they are accepting.

Finally, fractional investments only reserve a certain amount of premiums, once that is depleted (usually LE +1 or 2) than they do premium calls to investors. That means that your investors have over a 30% probability of getting a call asking for another 10K+

How did you calculate a 30% probability of a premium call?
 
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