Do you know anything about life settlement policies and funds? Life settlements are another great way for you to make your money work for you, especially if it’s growth you’re looking for.
In today’s episode, we are joined by Kevin Nichols, the master of life settlements and the managing partner at Penumbra Solutions. His Penumbra Fund invests in life settlements with lower costs so you can get your money working for you with the lowest risks and greatest returns possible.
Watch this video to learn more about life settlements from Kevin and to see if it is an investment that will work for you and your goals!
Quotables
“You don’t have to take high risks to get high returns. It’s how you create the lowest risk to get the highest returns possible.”
“Senior life settlements are policies that seniors no longer need, want, or can afford. They sell it to us, we buy it, we pick up the premium payments, and when that senior citizen passes, we collect the death benefit.”
“For our purposes, universal life policies are perfect.”
“The average age of the insurance in our funds is over 92 years old.”
“They come to us, we have brokers and attorneys that bring them to us. We don’t ever go looking for them directly, we don’t ever have any hand-to-hand or face-to-face, everybody is kept at arms’ length.”
“When the insured passes, we collect the death benefit and we distribute it amongst the owners of the fund.”
“We can’t touch the money. We have a third-party custodian, an intermediator, who handles all the money.”
“In this business, what we do is, we are buying our growth in advance. We know exactly how much we’re gonna make from every single policy. What we don’t know is when we’re gonna get it.”
“We don’t have to rely on the medically underwritten life expectancy estimate because we really put much more weight on two actuarial departments – the CDC and the BBT.”
“These people raise their hand and say, “I can’t afford this any longer”.”
“If you’re gonna need to use this money in the next 10 years, don’t put it here. This is a growth fund, not an income fund.”
“It’s a great vehicle for wealth transfer, but not from a tax standpoint.”
“If you’re gonna have to pay for taxes, the best alternative, of course, is to make it grow as much as you can.”