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Frequently asked questions (FAQ)

$10,000 for a Cash/Non-qualified Investment,

$25,000 for a IRA/Qualified Investment

If you invest with cash, the only cost happens when the premium reserve account runs out. This cause a capital call, meaning you may need to add more money.

At Life Asset, we aim to keep your costs low. That’s why we created a pooled reserve account. This system helps reduce the chances that you will ever have to pay out of pocket.

Firstly, When you invest using retirement funds, Life Asset helps you set up a self-directed IRA.

Then we recommend IRA Club because they have low fees and strong customer service. However, if you already use another self-directed IRA provider, we can still work with them.

Additionally, if your retirement money is with a standard solid, still we will help transfer it. The process is tax-deferred, so you won’t pay penalties when moving your funds.

Like any investment, life settlements involve some risk.

Once the biggest risk is longevity the insured person may live longer than expected. To prepare for this, we use life expectancy reports created by licensed medical experts. However, no prediction is ever perfect.

As long as, if the policy continues beyond the expected time, the premium reserve might run out. As a result, a capital call could occur. This reduces your overall return. In rare cases, if not only the insured lives much longer, but also you could even lose part of your principal.

Before we purchase a policy, we work with a third-party life expectancy company.

These firms usually staffed by doctors look at over 200 pages of documents. This involve medical records, family history, and actuarial data. They use this information to estimate how long the insured might live.

You can request these reports from us at any time.

Yes. Life settlements are completely legal. In fact, they’ve been legal for more than 100 years.

In 1911, the U.S. Supreme Court ruled in Grigsby v. Russell that life settlements are valid, lawful transactions just like buying or selling any other asset.

Not exactly. While they seem similar, life settlements and viaticals are very different.

Life Settlements

  • Sold by senior citizens, often with chronic illnesses

  • Life expectancy: 3–10 years

Viaticals

  • Sold by younger people (ages 30–60) with life-threatening conditions

  • Life expectancy: under 2 years

  • However, thanks to modern medicine, some live for decades

Because of these risks, Life Asset does not offer viaticals. We focus only on life settlements, which move to have more predictable timelines and lower risk.