For nearly 20 years, mutual fund managers, investment bankers and institutional money managers have known about the power of life settlement transactions. Pacific West Capital has adapted their tactics and opened this investment opportunity to the general public in California. With a $20,000 investment, each customer can see a 100 percent return or greater. The minimum contribution buys a percentage of the death benefit proceeds in a specific life insurance policy. When the insured passes away, the grade-A insurer pays out and the proceeds are distributed proportionally to each investor by an independent trustee. While the annual rate of return can vary, life insurance settlements offer competitive returns in a low-risk asset class.
Clients gain a sense of security when they know their principal will likely double at the end of a life settlement contract. Many people choose to invest their retirement funds from 401(k) plans and IRAs because the risk is minimal and the return is competitive. Pacific West Capital Group cannot guarantee the annual rate of return, but the team does select life insurance policies with factors that help to expedite the maturity date. All insured individuals have been diagnosed with chronic or degenerative diseases and have reached an advanced age. In addition, Pacific West Capital takes precautions so that the policy payout and subsequent investment cannot be contested.
Some California companies take unnecessary risks when it comes to life insurance policy securities. They place their customers in viatical settlement contracts, which may never pay out if the insured’s terminal condition improves or a new drug is released. Pacific West Capital Group focuses solely on life settlements from people aged 75 or older with degenerative or chronic health conditions. Because there is no cure for old age, these policies mature within a reasonable timeframe. They produce competitive yields without excessive risk. Each investment buys a portion of the beneficial interest in a non-contestable life policy backed by a grade-A insurer.
Each month, the highly skilled analysts at Pacific West Capital sort through more than $500 million of universal life insurance policies. Their goal is to bring clients the low-risk, competitive yield contracts that diversify portfolios and protect against market volatility. The California-based firm never buys term policies, so it never passes these risky investments onto its clients. A $20,000 investment can buy a share in the beneficiary interests of a non-contestable life policy. When the policy matures, investors can expect to double their money or more. With higher contributions, California investors can purchase additional shares in the same policy or spread their investment over multiple policies.