Complete Financial Planning Services (CFPS) has expanded its range with the introduction of a life settlement investment product.
Life settlements consist of the purchase of life insurance policies from US senior citizens with a short life expectancy. The insured US citizens enjoy the immediate benefits of the cash, which is higher than the surrender value of the policy, with the investors (the purchasers) receiving a targeted annualised rate of return between 10% and 12%.
Complete’s life settlement product, The Cascade Portfolio, is a direct ownership investment, provided by Mosaic Caribe.
It can be included in a SIPP, which usually enables the investor to switch under-performing funds within their SIPP to the Cascade Portfolio.
In addition to the return, investors enjoy the benefit of income from life settlement investments being treated as capital gains (currently charged at 18%), with no CGT or income tax charged if the Cascade Portfolio is purchased via the investor’s SIPP.
Tony Salentino, CEO of Complete, said: “Mortgage advisers and IFAs are increasingly looking for new ways to offer a holistic service and added benefits to their clients. Although life settlements are relatively new to the UK