Life Settlement Funds Review: Good Investment or a Death Bubble?

Life Settlement Funds Risks and Reviews

Investors are generally looking for new ways to get a return from different sources. Life settlement fund is some like this kind of source. It is a selling of existing life insurance policy to another person for cash value which is not equal to the death benefit but less than that receivable amount. Here we get life settlement funds reviews.

In this settlement program, the third party pays the cash immediately on behalf of an insurance company. In return, he receives money when the insured person passed out. The policy owner wants to move to another kind of life insurance or he can’t afford the premium or whatever the reason, he wish to sell his current policy to another.

Financial planner, advisor, insurance broker, attorney, friends, family member or estate planning presentations give advice to settle policies in a different way. The companies like Credit Suisse buy lots of policies to create funds same as mortgage property turned into securities. Investors generally seeking for return up to 20 to 40% rate. Senior citizens have sold their life settlement for $11.8 billion. The situation of selling life settlement is due to fiasco of sub- prime mortgages.

However, this seems like a fraud business for those who purchase policies for profitability. The factors like medical care changes, cancer, swine flu and other diseases add risk to the investment. The insurance industry plans to manage above mentioned risks by doing a better job of buying and selling the settlements and creating a bundle of policies which include a huge variety of diseases.

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The return on investment of life settlement policies depends on the method of payment of claims of insurance companies. And these companies are depending on the general economy. Some people feel very uncomfortable while they knowing about unexpected early death. Public and private retirement funds are major customers of this kind of settlement policies. These retirement funds stand for an early death benefit.

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