Life settlement arrangements, such as those available from Pacific West Capital Group, can provide superior profitability for investors willing to wait for these larger payouts. Buy and hold strategies are the key to success in the life settlement industry. The annualized rates of return for these investments are not available until the life settlement arrangement reaches maturity on the death of the policyholder. As a result, these should be considered as long-term investments comparable to federal or municipal bonds. The actual return on these investments at the point of maturity can often exceed 100 percent, making them an exceptional value for savvy investors.
Life settlement arrangements from Pacific West Capital Group can be an ideal way to put the power of profitability to work on behalf of your individual retirement account (IRA). Especially for investors who have many years before retirement age, the solid returns on investment and relatively low risk of life settlements can be an appealing and efficient way to amass a significant amount of capital to ensure a more comfortable retirement. Life settlements are largely immune to major shifts in stock market prices and economic conditions, making them a more dependable source of investment revenues for aspiring retirees.
Understanding both halves of the equation when considering an investment in a Pacific West Capital Group life settlement can provide valuable insights into these financial arrangements.
• Senior citizens over the age of 75 can sell the value of their life insurance policies to Pacific West Capital in return for a higher payment than that offered by the insurer for a surrender value.
• These policies are made available to California individuals and institutions with $20,000 or more to invest.
• When the policy matures, investors receive fixed returns of 100 percent or more over their initial investment.
These policies offer profits independent of the performance of the stock market and can be used as hedges against further economic downturns in the U.S. financial marketplace.
The life settlements available from Pacific West Capital Group do not offer an annual rate of return as such. Instead, investors achieve fixed returns on their investment of 100 percent or more when the investment reaches maturity. The risk involved in these investments is considered to be opportunity risk rather than principal risk. However, historically low interest rates and depressed economic conditions throughout the financial marketplace generally negate the factor of opportunity risk for most investors. Even when the return on Pacific West Capital investments is amortized over its duration, most investors will still see improved profitability in relation to other available investment opportunities.
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.
It makes sense that a company, such as Pacific West Capital Group, whose mission statement is to work with qualified investors to achieve their investment goals in a competitive market would be a member of a national association that shares its ideals. The Life Insurance Settlement Association (LISA) acts as the voice of the life insurance settlement industry.
LISA has more than 100 company members in the United States, Puerto Rico and the U.S. Virgin Islands. The association promotes state and federal legislation that regulates the Life Settlements industry to improve public awareness and promote a competitive marketplace.
Since life insurance settlements do not fluctuate like stocks, bonds or mutual funds, the more frustrating aspect seems to be not knowing the maturity date. Pacific West Capital Group has improved investor confidence over the past five years by working to accurately assesses life expectancies. This process closely matches insurance company projections but concentrates on the unique life settlement industry. After adjusting a payout date by just one year, investors can theoretically see an increase of five percent or more to their annual rates of return. While the total return remains at 100 to 150 percent, the annual return can be an important gauge for how well this investment fits into a person’s portfolio.