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Subject:  Low CD RAtes Date:  4/14/2008  3:27 PM
Author:  EvanReed Number:  12844 of 20604

I invest my Mothers(92 years old) money, to try to maximize her income.
She is in a nursing home and expenses keep rising.

She just had a CD mature (was at 5.8%) now rates are so low, it will cut her interest income in half. I have checked Bank-rate, gone to a CD broker (that we used before with success) Broker does not now have a bank that will take new money at high rates. He does have a John Hancock Life insurance policy which they bought as a life settlement.
It is a 45 month term at 9%. If the policy owner dies, the policy will pay off, if not a Bond company pays. The broker tells me that it is safe and sure.

I understand what a life settlement is, but have not heard of selling it off to investors in chunks. Is this all legit and one way of earning more on your money?

Hope someone with experience can help
Thanks much,
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