Life Settlements

Annuity Alternative Sets Sail!
by Curtis Cole

Life Settlement investments offer product diversification and additional commmissions from existing and future clients. Have you looked at the market lately and wondered, “What are my clients going to get on their EIAs this year? That’s the question we’ve been asking ourselves. One of the best features of the EIA is the no loss of principal provision, but explaining a low or zero annual return is still hard.
We discovered recently that our clients could invest directly in life settlement policies. Did you think that only large financial institutions were able to buy these unwanted life insurance policies? That’s what the big boys want you to think. Our clients – individual, private investors – can invest in the same policies and achieve the same potential for superior returns to which these institutional powerhouses have become accustomed.

Direct fractional ownership of unwanted and unneeded life insurance policies is a true portfolio diversifier. The following are some benefits to individual investors who have direct fractional ownership in life settlement policies:
• They are not correlated to stock, bond, commodities, and real estate markets.
• They are not affected directly by interest rates, global economy, or political climate.
• Investment assets are issued by some of America’s largest and most financially stable life insurance companies.
• Investments are underwritten by a wholly owned subsidiary of a -NASDAQ traded company.
• They are transferable assets for estate planning.
• They provide true portfolio diversification.
(We discussed three methods of investing in life settlements in the February 2008 issue of California Broker Magazine. Direct fractional ownership by individual investors is the only method that meets the strict criteria for our clients.)

When the stock market hits the doldrums, we have only been able to tell our clients to hold on and wait for an upturn in the market. But, with life settlement investments as one of our portfolio diversifiers, market volatility doesn’t affect their holdings of this new asset class. In fact, their life settlement portfolio returns are not correlated to the market at all and that makes for happy clients.
It’s rare to find an investment in which clients can achieve the same returns, as can large institutional players. We consider life settlement investments to be our only wholesale investment. Clients can achieve the same potential for superior returns that the financial giants are achieving. Until more recently, most wholesale investments were purchased by large financial institutions that took a large profit off the top and repackaged the investment in retail form with a much lower yield to you and me. Two of the largest institutional buyers of life settlement investments have been Warren Buffet and AIG, which should boost your confidence in the reliability and profitability of life settlement investments. Wouldn’t your clients like to invest on a level playing field with these big boys?
Everyone is looking for a superior return on investment in a vehicle with a high degree of safety, especially those in or near their retirement years. Agents and brokers have a new stream of income through life settlement investments now that institutional-style returns are available to the individual investor. Will you be the first to introduce your clients to life settlement investments? Your bank account will thank you and your clients will too.
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Curtis Cole is the president of New Asset Advisors, LLC in Dallas. He is an expert in life settlement investments. For more information about offering life settlement investments to your clients, contact 877-319-3999, curtis@new-asset.com, www.newassetsales.com, or www.newassetadvisors.com.