In today’s volatile economy, many accredited investors in California who are close to retirement age are looking for ways to help safeguard their retirement funds. Exploring life settlements in California could be an excellent idea for advisors seeking a stable alternative investment for their clients.
New Asset Alternatives specializes in these types of investments. Their financial experts truly understand alternative investment strategies that can add diversification and stability to more traditional portfolio assets such as stocks, bonds and mutual funds.
An investment in life settlements is a new avenue for portfolio growth that is one of the most commonly overlooked asset classes and is a specialty of New Asset Alternatives. A life settlement is the sale of an existing life insurance policy for its fair market value. As an advisor in search of smart alternative investments for your clients, you need fresh ideas to help stabilize and grow your client’s portfolio – ideas that address their unique needs and financial goals.
New Asset Alternatives can assist you with these goals and educate you on the benefits of senior life settlements in California. Across the country, but in particular The Golden State, senior life settlements in California are a unique financial alternative for accredited investors that deserves careful investigation.
Facts About Life Insurance and Life Settlements:
What is a Life Settlement?
Fact: The policyholder sells their ownership and beneficiary rights to their life insurance policy at a discount for a lump-sum payment that they can use now.
Fact: The purchaser buys the discounted policy, premium payments are maintained until maturity and the purchaser receives the full face value.
Key Perspectives Relative to Life Settlements:
Fact: People buy life insurance for a variety of reasons. Life insurance, like all insurance, is simply a financial tool.
Fact: Most individuals buy life insurance to protect their families in case of their early demise and a resulting loss of income. Many wealthy individuals purchase “special use” policies to cover their estates during a time of illiquidity.
Fact: Most life settlements involve the purchase of “special use” policies such as:
- Keyman insurance
- Wealth replacement policies for estate tax planning
- Policies purchased to fund, corporate buy/sell agreements
Fact: Over 90 percent of these “special use” policies lapse within eight years and the death benefit is never paid by the insurance company, creating trillions of dollars of free cash flow for insurance companies.
Fact: Reasons why a policyholder might consider selling their policy include:
- Safety net for beneficiaries is no longer needed
- Changes in marital status
- Insurance premiums have become unaffordable
- A need exists to fund long-term care
- An immediate need arises for a named beneficiary or charity
- A family or medical emergency prompts a need
Now, consider what happens when these individuals don’t need or want these special use insurance policies anymore?
Most policyholders are only aware of these three options:
- They can take the cash value and cancel their policy.
- They can take a “paid up” policy for a lesser amount.
- They can let the cash value pay the premiums for a period of time and then let the policy lapse.
Naturally, these options are very good for the insurance company as they save the insurance company millions, if not billions of dollars each year by ensuring that they do not have to pay the death benefit.
But what most policyholders don’t know is that they have a fourth option that is rarely revealed: They could sell their insurance policy to an investor for its “fair market value.”
The “fair market value” is what investors are willing to pay for a policy to become the new owner and beneficiary. New Asset Alternatives is an expert in the field of life settlements and life settlement investing.
Contact the financial experts at New Asset Alternatives today and find out if senior life settlements in California can help protect and grow your client’s nest egg.
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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