I have recently come across a new investment platform that I believe to be the match for investing in annuities. The competition I am talking about is the Resale Life Insurance Investment Industry.

In the simplest of forms, this investment vehicle is just recently being made available to the retail investor. The Big Timers (Berkshire, Goldman, Credit Suisse) have been investing in Life Insurance for over the last 10 years but the playing field is now somewhat leveled allowing retail investors (everyday folks) to engage in the investments that the big dogs use.

The reason this investment has become so popular with the corporate world is because of the risk/reward ratio. Generally speaking, the money invested is completely illiquid, but it earns double digit annual returns and is guaranteed to be paid back.

A Life Insurance Investment is guarnateed to be paid back for two reasons. One, is every one at some point will die. So you will at least have your principle returned if everything goes wrong. If everything goes right, you could double your principle in 3-5 years with a risk equivalent to the T-Bond in the stock market. The great thing about the Life Insurance Investment arena is that there is NO MARKET CORRELATION.

So, for the professionals or interested parties out there, what do you think could be the positives or the negatives compared to annuity investment? I have just recently learned about this investment opportunity and I wanted to get some valuable insight from the members here to see if there would be a valuable benefit to an investment of this kind.


The_Whale