While stocks and bonds remain crucial for wealth accumulation, alternative investments stand out with their unique benefits, especially in navigating market uncertainties to achieve financial success.
Key among these benefits is the low correlation of alternative investments with traditional asset classes. Their performance often diverges from that of stocks or bonds, providing a robust shield against market volatility. Including assets like real estate, commodities, private equity, or hedge funds in your portfolio can significantly mitigate risk while potentially boosting overall returns. Explore the world of alternative investments with us and discover how they can add a new dimension to your investment strategy, enhancing both diversification and potential for higher returns.
Life Settlement Investments offer an asymmetrical risk-return strategy, maximizing investment upside while controlling downside risk. This approach involves purchasing fixed future receivables at a significant discount, transforming life insurance policies into valuable financial assets.
The 1911 Grigsby vs. Russell Supreme Court ruling laid the foundation for the robust secondary market for life insurance. This market empowers policy owners to receive fair market value for their policies, surpassing the often lower cash surrender value from insurers.
A life settlement transaction involves selling an existing life insurance policy to an investor for more than the cash surrender value but less than the net death benefit. Ideal for policyholders facing a lapse, underperformance, or a change in personal or financial circumstances, life settlements convert an underutilized life insurance policy into immediate cash. The investor, upon purchasing the policy at a discount, takes on the premium payments and awaits the maturity of the policy to receive the death benefit.
The value in a life settlement is primarily based on the insured's life expectancy, policy face amount, and ongoing premiums. For the original owner, a life settlement often proves more beneficial than allowing the policy to lapse or surrendering it back to the insurer. It's a strategy that transforms a dormant asset into an active one, offering a unique investment avenue with potentially lucrative returns.
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