Quote Originally Posted by Art Mann View Post
So then the insurance companies don't have to have 100% of their liabilities in reserve. I already knew that but was just wondering why you said something so irrational.

Insurance companies do the same thing with their assets that a mutual fund does with its assets. They invest them in stocks, bonds and a host of other investment vehicles. If you choose a good insurance company to deal with, then you are pretty safe. If you buy an insurance policy written on someone by an unsound insurance company then your investment is risky. There is no such thing as a risk free investment and the riskier it is, the more up side potential there is. The market is incredibly efficient.
It has zero to do with the insurance company investing in anything. The insurance company isn't the seller. I really could care less how they invest their money. I suppose it's true there is no risk free investment but this is as close as you can get. 300 to 350 per cent yield in 5 - 7 years. This isn't available to everyone. As I said you have to be accredited. You can research that if your interested.

Just for discussion sake let's say you have 1 million dollar life insurance policy and for whatever reason you want or need money now. If you are over 65 then you are eligible to sell. You can put it out there for sale. You might receive none or several offers depending upon whether it looks to have a reasonable expectation of paying of in the near future. Determined by the actuarial tables. Suppose after all the pro's and con's are weighed you receive an offer of 300 hundred thousand for it. If you accept you will be paid that amount and ownership will be taken over by the investment group as well as premium payments. The face value of the policy will pay to the investment group and be divided accordingly. The only point that the insurance company becomes a player is when a claim for death benefits is filed. Until then it's business as usual for the insurance company.