Life Settlement Investing Question

Q: I am semi-retired, and I must say that I enjoy your feedback on investing when you substitute for Bob Brinker. I recently looked into an investment vehicle which bases profits on "life settlements." Clients invest in providing funds to cover life insurance policies of older clients over 75, I believe. When they pass away, the proceeds are paid back to investors after 5 years at more than 100 percent on their money.

Can you give me some idea what this is all about? I feel that I have a very balanced portfolio with Fidelity and real estate, but this intrigues me.

And by the way, I purchased your book today!

A: Thanks for buying the book. Your question is about "viatical settlements." You can Google that word and read a lot about them.

I avoid them like the plague. First, I think it is ghoulish to buy someone's life insurance policy, and stand waiting to collect when they die. Yes, they may need the cash now, but that's not what I want to be doing with my money.

And second, when you get in on these deals there are always a lot of fees taken by the people who put the policies together with the investors. You don't even get paid enough for taking the risk that the person -- or persons in case of a pool of policies -- will live longer than expected. That's what happened to many investors in the early 1990s --

when aids "cocktails" were invented, and those thought to be dying of AIDS recovered and are still living! The investors are still waiting to collect!

This is just not for me -- from an ethical and investment point of view.

Source: Terry Savage

This is a pretty good question but once again is discussing the investment side of life settlements/viatical settlements. RTG Consultants works directly with the senior clients or their agents/advisors. We do not handle any investing and strive to achieve the highest payout for your unwanted/overpriced life insurance policy.

Speak with a Life Settlement Specialist by calling 1-888-973-8377

Till next time, have a blessed day..