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Annuity alternative sets sail

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Did you ever wonder after completing an annuity sale with a client if you “left money on the table?” Was there some other product that your client was looking for to diversify their portfolio with that you didn’t have? Annuities have been extremely popular with our clients, but we knew that they were looking for more. After an exhaustive search, we found an annuity alternative that complements our clients’ existing portfolios and gives us another income stream.

We recently discovered that our clients are able to invest directly in life settlement policies. “What?” you ask. “I thought only large financial institutions were able to buy these unwanted life insurance policies.” But the fact is individual, private investors can invest in the same policies and achieve the same potential for superior returns to which these institutional powerhouses have become accustomed.

With the advent of direct fractional ownership of unwanted and unneeded life insurance policies, clients now have a true portfolio diversifier. The benefits of direct fractional ownership by individual investors in life settlement policies are:

  • These policies are uncorrelated with stock, bond, commodities, and real estate markets;
  • They are not directly affected by interest rates, the global economy or political climate;
  • They are issued by some of America’s largest and most financially stable life insurance companies;
  • Investments are underwritten by a wholly-owned subsidiary of a NASDAQ-traded company;
  • Transferability for estate planning;
  • True portfolio diversification.

When the stock market is strong most investments soar. But, what happens when the market hits the doldrums? In the past, we have only been able to tell our clients to “hold on and wait” for an upturn in the market. But with life settlement investments as one of our portfolio diversifiers, volatility in the market doesn’t affect their holdings of this new asset class. In fact, their life settlement portfolio returns are not correlated to the market at all – and that makes for happy clients.

It’s rare to find an investment where clients can achieve the same returns as large institutional players. We consider life settlement investments to be our only “wholesale” investment, in that clients are able to achieve the same potential for superior returns that the financial giants are achieving. Until more recently, most wholesale investments have been purchased by large financial institutions, who took a large profit off the top, and then “repackaged” the investment in retail form with a much lower yield.

Everyone is looking for a superior return on investment in a vehicle with a high degree of safety, especially those in or near their retirement years. Now that institutional-style returns are available to the individual investor, agents and brokers have a new stream of income to tap into through life settlement investments. Will you be the first to introduce your clients to life settlement investments? Your bank account will thank you, and your clients will too.

Curtis Cole is the President of New Asset Advisors LLC in Dallas. For more information, call 877-319-3999 or visit


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