7 Reasons Why You Should Consider Holding Tradable Insurance Policies in Your Portfolio
Tradable life insurance policies are insurance policies that policyholders can sell to third-party buyers who want to add life insurance policy exposure to their investment portfolio. Tradable life insurance policies can include endowment, whole life, universal life, key-man, and investment-linked insurance, among others.
Most life insurance policyholders are actually not aware that their policy is actually an investment asset that can be sold to third-party buyers instead of simply surrendering their policies back to the insurer when they want to access their policy’s cash value.
The market for tradable insurance policies is currently very illiquid, difficult to access and involves using several intermediaries in the process of buying and selling policies. Hence, this asset class has never managed to grow into an attractive market for investors.
However, this is about to change as Singapore-based fintech startup fidentiaX is developing the world’s first marketplace for tradable life insurance policies. The new blockchain-powered platform will bring together policyholders and insurance policy buyers in a transparent, user-friendly and trustless trading environment.
This will not only empower life insurance policyholders to sell their policies for a potentially higher cash value to third-party buyers instead of surrendering them but it will also attract investment managers, corporations, and private investors who want to gain exposure to this interesting alternative asset class.
The most prominent features of this asset class are capital preservation, stable returns, a fixed tenure, potentially higher returns than comparable asset class, and zero correlation to stocks and bonds, among others.
https://medium.com/@fidentiaX/7-reasons-why-you-should-consider-holding-tradable-insurance-policies-in-your-portfolio-a050f5b72114
