Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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,
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.