The Secret of Life Settlement Investing

Today I want to share some education on a really cool asset class that many investors are not aware of.

It is called Life Settlement Investing.

Now, you may be familiar already with life insurance where a person pays a monthly premium to a life insurance company and in return, that life insurance company pays a death benefit to the loved ones of that person when they pass away.

Well, some of these life insurance policies are called cash value policies, meaning that a portion of that monthly premium goes into a savings component of the insurance policy and builds up a cash value that can used to pay premiums, be borrowed against, or even payout to the owner of the policy for them to use.

Life Settlements fall into this category of cash value life insurance policies.

Basically, with a cash value policy there are 4 main parties to know about:

1. The owner who pays the premiums and can take loans, distributions, change the beneficiaries, etc.

2. The insured, which is simply the person whose life is being covered by the policy and when they pass away, triggers the payout of the death benefit.

3. The beneficiary, which is the person who will receive the death benefit.