Self Directed IRA Life Settlement Contracts
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Alternative Investments > Life Settlement Contracts
Life settlement contracts involve the purchase of interests in life insurance policies on the life of a third party. These policies may be sold by seniors who need to cash-out of a life policy.
Since the mid-1990’s, the secondary market for life insurance has grown significantly. The Life Settlement Institute states that life settlements have paid policyowners more than $1 billion over the cash-surrender value for their policies. Industry researchers cite several factors for the growth of this business:
- Longer life expectancies causing seniors to outlive the usefulness of their life insurance policies;
- Declining interest rates in the past few years, which could result in lower cash values within existing policies; and,
- The reduction in, and even the possible elimination, of the estate-tax burden.
If you’re interested in purchasing an interest in a life settlement contract, please contact an agency specializing in these types of contracts. Millennium Trust does not recommend any particular investment or asset category. Investors are urged to speak with a tax or investment advisor before investing
self directed IRA funds.
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