Fund managers expect a great year for the life insurance policies. This is because people are looking for alternatives. They are all looking for a steady and good investment because a bank account, property, equity and bonds aren’t delivering anymore. Before investors of the bull market found the returns to low, but now the security of this ‘low’ return looks very attractive.
The system of the traded life policies is that the insured party, this is most of the time a person over the age of 65, sells the policy to a buyer at the market for a sum. This gives the buyer the right to collect the death benefit. The average policy value today is $728,000 but they expect a decrease to $500,000 by the end of 2009.
A study tells us that the traded life policies would duplicate in the year 2012, this compared to 2007. At the year 2009 MPL expects a growth of $250 million! But they warn that it is important you buy high-quality policies. You need to look for information and buy at the right price.
My opinion is a bit divided. I think indeed an investment in life insurances is a very good idea. You have to think at later, when you are retired. The legal pension won’t be enough to keep the same living standard. So you really need an extra. The life insurance is here a good decision. But I think it’s a bad idea to invest all our money in a life insurance. In this time of economical crisis, the economy needs a push. The people are scared and look for safer investments. But the companies need us. When we all going to put our money in safe investments and won’t be playing on the stock exchange anymore, the companies will lose more and more money… money they really need!
De Ridder Steffie
Source: http://www.reuters.com/article/rbssInvestmentServices/idUSLG52187120090218?pageNumber=2&virtualBrandChannel=10452
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In these days, the increase of the demand of life insurances is logical. People lost their faith in almost any investment with some risk of losing their money. People are interested in stable investments, even if those investments realize a low(er) return. People play it safe.
BeantwoordenVerwijderenI think it’s strange that you can trade your life insurance because it is a personal contract. In the contract the names of the insurer, the insured, the policyholder and the beneficiary are known. The original objective of the life insurance is that you can keep your living standard when you are retired. Trading your life insurance changes the whole concept. It is not anymore an addition at your retirement, a life insurance has become a real marketable product.
Sofie De Cooman
With the financial crisis over the whole world, it's important to look for a good and save investment for your savings money. Life insurance policies are a good alternative for a common bank account. The return of the bank account isn't stable and they're still going down. The profit is not high, but the profit people receive with a traditional investment is even lower. That's the reason people look for the best alternative and they are right! If you can gain 100 euros or you can gain 200 euros, everyone would choose for the 200 euros.
BeantwoordenVerwijderenBy the end of 2009 the value of the policies will decrease with more than 200 000 euros. In fact it's the right time to put your savings into a policy.
If the trade policies will actually be twice as high as they were in 2007, all the investors will have to be very attentive and take a good look in which policy they will invest. It's not the same when you invest in a low-quality or in a high-quality policy. The profit of a high-quality policy will obviously be much higher. The key word is information! The second most important fact to look at is the price. When you buy a policy, you have to gather information about the current position of the policy. The population is becoming older and so are we. We have to make sure we can live the same way later as we do now. That's the importance a good investment has. If we're invest our money smart now, we will be very thankfull later!
Nathalie COUDEVILLE