It makes absolute sense for virtually every senior to understand what the value of their life insurance and life settlement potential is. That is a far cry from saying that a life settlement is the right thing to do. (Just because you know the market value of your house does not mean you should sell it).

The fact is that life settlements may be a bad decision for the family. In addition, people need to be aware that a life settlement is a complex process and may take some time. There are many variables that your life settlement broker needs to negotiate. With hundreds of thousands of dollars and potentially millions of dollars on the line, investors require significant due dilligence to ensure their investment is sound. So make sure you understand the life settlement process and are prepared for it.

If the biggest and smartest names on Wall Street invest aggressively in alternative investments don't you think it would be a good idea for every investor? One of the most successful alternative investments today are life settlements but there are many others you and your advisors can consider.

What is the benefit of alternative investments? Well it boils down to returns and safety. Often alternative investments have very high rates of return. For example investors in life settlements routinely make 15% per year on A rated paper. In addition you add security to your portfolio by diversifying into another asset class. In our opinion you at least owe it to yourself to explore the opportunities.

For a senior, life insurance can now be considered an asset just like real estate or stocks and bonds. This is because there is an active secondary life settlement market that is willing to buy that asset. Understanding the market value of a life insurance policy is an important part of managing your portfolio. It's tough to decide whether you should sell or retain an asset unless you know its worth. 

Valuing a life insurance policy is a complex task but one of the first steps in the life settlement process. The main components in a valuation are life expectancy and policy and premium information. Your life settlement broker is the one who will put all this information together. One of the most widely used tools is called Milliman software and most brokers and investors use this product. You can be confident in valuations that are produced using this system.