On May 17, 10:02 pm, Douglas Johnson <p...@[EMAIL PROTECTED]
> wrote:
> beliav...@[EMAIL PROTECTED]
wrote:
> > Looking at some ads run enticing people
> >to sell their life insurance policies, the rates of return for
> >investors look high.
>
> They are if the guy has the good manners to die promptly. If he lives
too long,
> the returns go in the tank. -- Doug
That depends, of course, on the size of the death benefit relative to
the cost of buying the policy and of keeping the policy in force. What
piqued my interest was an advertisement in the magazine Smart Money
that also appears at http://www.insure.com/sellyourpolicy/index.jsp
.
Here is one example:
83 year-old female: $2,000,000 policy
Cash offer: $400,000
The annualized returns for the investor as a function of how long the
insured lives, assuming no further premium payments, are
#years ROR
05 38.0%
10 17.5%
15 11.3%
20 8.4%
So this would be an attractive investment, especially as part of a
****tfolio of similar policies.
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