Life Settlement Investments Overview
A great life settlement investment overview, looks like it was constructed by Life Partners.
So how do Life Settlements from LPHI measure up to our panels’ characteristics of the ideal investment? Let’s review:
a. Safety
On the risk continuum, Life Settlements offer the equivalent safety somewhere between money markets and investment grade bonds.
b. Security
LPHI and its escrow affiliate, Dunnam & Dunnam are regulated by the SEC and operate under the oversight of the Texas Board of Banking, national banking laws, and Texas Department of Insurance. They are audited by Murrell, Hall, McIntosh & Co., PLLP and KPMG, PLLP respectively. LPHI maintains an “arms length” policy for its investors so all policies and funds are held in trust. LPHI does not touch the investor’s money.
c. Performance
Since inception Life Settlements as structured by LPHI has produced historic double digit returns with an averaged ROI over 15% (past performance does not guarantee future results). This financial product has a battle tested track record through both bull and bear markets.
d. Diversification
Life Settlements are the ultimate diversification tool due to the fact that they are uncorrelated to the stock market, oil prices, interest rates and even terrorism. Life Settlements, as the cornerstone of any diversified portfolio, offer a hedge during economic downturns as well as during periods of market stability. Life Settlements serve as a better uncorrelated hedge then bonds and have the potential to generate double digit returns. They should be the FOUNDATION of every investor’s portfolio.
e. Mainstream
For many years Life Settlements were only available to institutional investors. Financial icons including Berkshire Hathaway, AIG, ABN AMRO, Merrill Lynch, Credit Suisse First Boston, and Deutsche Bank have invested hundreds of millions in life settlements with the understanding that the return of their principal and return on their principal are the Contractual obligations of highly rated insurance companies. Their pursuit of this market is related to the degree of PROTECTION and the AVOIDANCE of Market and Economic Risk. These institutions involvement provide immense credibility because of the level of due diligence they require of any investment before actually committing their own dollars. Life Settlements presents the rare opportunity for an accredited investor to invest on a level playing field with major institutions.
f. Win/Win Investment
LPHI provides viable options through the secondary insurance market where none existed before. Senior citizens are released from the burden of high premiums and are provided lump sum payments. In many instances, this much needed capital infusion allows them to live out their remaining years in dignity. We allow seniors the ability to turn a death benefit into a LIFE BENEFIT.
g. NO Management Fees
All fees associated with Life Settlements are built into the acquisition costs and therefore all of the investor’s money goes to work for them. All your money is invested without paying any management fees or underlying fund expenses in cash or IRA investments. Qualified funds are subject of Custodial fees; typically around $100 to $200 annually.
h. Liquidity
Life Settlements should be viewed as a medium to long term investment. They are perfect for retirement dollars, college savings funds and cash investments.
i. Clear Exit Event
While at certain points in time the DOW has yielded double digit returns, even the best exit strategies are formulated on speculation and conjecture. To enjoy increasing returns, one must accept the ever increasing risk of losing principal along with profits. The investor, at his or her discretion, may exit at every policy maturity. The vast majority of investors however, elect to roll over returns into additional policies. Unlike the securities markets, decisions to exit or reinvest in Life Settlements are never predicated on speculation or mere conjecture. Life Settlements are the ultimate AUTO PILOT INVESTMENT.
