With the volatility of the stock market, many investors are seeking new ways to diversify their portfolios with opportunities that offer low-risk, high-yield returns. At Ben Mohr, LLC, we help investors achieve long-term financial success through one popular and trustworthy alternative investment in particular: life settlements.

A life settlement is the legal sale of an existing life insurance policy to a third party. The owner of the policy sells their life insurance policy to a life settlement provider in exchange for cash, usually to help pay for long-term healthcare costs or end-of-life expenses.

At this point, you may be wondering if life settlements belong in your portfolio. If you are an investor looking to diversify your portfolio with alternative assets, life settlements can be a great way to do so! Here are just a few of the reasons why life settlements are a lucrative investment opportunity.

Life Settlements Offer High-Yield Returns

Compared to traditional investments, life settlements have the opportunity to yield steady, compounded growth over a long period. Once a life insurance policy is sold, the investor becomes the owner/beneficiary and pays all premiums on the policy. After the insured passes, the policy Death Benefit is paid out to the investor.

While life settlements do not offer quick returns compared to traditional investments, they have been shown to outperform the stock market with annual returns typically ranging from 8-12%. This is ideal for investors who want access to steady, compounded growth in a low-risk environment.

Life Settlements are Not Correlated to Other Investments

Perhaps one of the biggest benefits of adding life settlements to your portfolio is they are not correlated with other investments. Unlike traditional investments, such as stocks and bonds, life settlements are not affected by market fluctuations, interest rates, or changes in the economy. This makes life settlements one of the rare investment opportunities that allow for true diversification.

Because of this low correlation, life settlements can help stabilize your portfolio and lessen risk during market fluctuations or economic downturns. By adding life settlements to your portfolio, you can diversify your investments, reduce volatility of your portfolio, and get steady returns over time.

Life Settlements Help with Diversification

Diversification is key to secure investing. Luckily, life settlements offer a unique and low-risk way to diversify your portfolio and receive compounding returns. Because life settlements are not correlated with any other investment, such as stocks, bonds, and real estate, they are a secure asset that can diversify your portfolio and boost its overall performance.

If you are an investor who is interested in diversifying your portfolio with alternative assets, life settlements can help you mitigate risk with a historically low volatility, uncorrelated, long-term investment opportunity. This can have a huge positive impact on your portfolio, especially during times of uncertainty.

Get Started with Ben Mohr, LLC

Life settlements are becoming a more popular alternative asset due to their lucrative returns, non-correlation with other investments, and diversification benefits. Of course, as with any investment, it is important to talk to your financial advisor to see if life settlements will fit into your financial strategy.

If you are interested in discovering how life settlements can help you diversify your portfolio and achieve your long-term financial goals, please get in touch! We would be happy to answer any of your questions and help you learn more about adding life settlements to your portfolio.