With so many investments trending downward, more and more advisors are looking for a smart alternative to help diversify their client’s traditional investments. It’s important for advisors to know the benefits of a life insurance settlement and what an excellent alternative investment idea it presents.
New Asset Alternatives has a proven track record in alternative investments, including life insurance settlements (also known as life settlements). Now is the time to begin learning about this new asset class and the experts at New Asset Alternatives are the right people to talk to about this timely opportunity.
Gain a competitive edge with life settlements
The life insurance settlement marketplace is a secondary market for life insurance policies. Many individual investors and financial professionals alike use life insurance as an estate planning, business planning or as a risk management tool. Few realize that the life settlement marketplace has the potential to provide additional benefits to their clients. The benefits of life settlements include:
- Enhanced risk management
- Opportunities to improve portfolio returns
- Reduced exposure to market and economic volatility
- Truly diversify portfolio holdings
During the last two decades, hedge funds, pension funds, college endowments and many other institutions have invested in life insurance settlements to improve portfolio diversity and enhance risk-return profiles.
Enhanced risk management ability
According to BusinessWeek, “…Uncorrelated assets like these [life insurance settlements] are highly prized in an increasingly connected global financial system.” Life insurance settlements, which may be invested in through IRAs, limited partnerships or other arrangements, are largely uncorrelated to traditional asset classes, such as stocks and bonds. As a result, life insurance settlement investment options may help investors reduce overall portfolio risk while providing attractive returns.
Opportunities to improve returns
Life insurance settlement investments have the potential to provide attractive returns over time. The actual return provided by a life settlement investment will be determined by the quality of the insurance company issuing the life contract, the discount at which the settlement is purchased, any premiums paid by the purchaser and the life span of the insured party.
Reduced exposure to market and economic volatility
The relationship between risk and reward for traditional asset classes has been well-established. In general, the higher the potential return, the greater the capital risks. Life settlements are not affected by the same risk factors that influence stock and bond returns. The key factor affecting the returns produced by life settlements is time.
Diversify product offerings
Financial professionals can select the types of life settlement investments they wish to include in a client’s portfolio. They can purchase specific policies, invest in a life settlement fund or participate through direct fractional ownership.
New Asset Alternatives has the expertise you need in alternative investments, including life insurance settlements. If you’re looking for ways to reduce portfolio risk while continuing to pursue attractive returns, you’ve come to the right place.
Contact one of our financial experts today and learn how an alternative investment, such as a life insurance settlement, may be just the investment you’ve been looking for.
Opinions provided on this Web site should not be regarded as a recommendation to buy, sell or exchange any particular security or financial product. The opinions contained herein are not intended to be a solicitation. Securities offered through Evolve Securities, Inc., member FINRA/NFA/SIPC (www.FINRA.org) New Asset Alternatives, LLC is a DBA of Evolve Securities, Inc. Investments with Evolve Securities are not FDIC insured, May Lose Value and are not Bank Guaranteed.
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