Rather than being based on the death of the insured persons, this fund concept creates an alternative to the termination of the insurance policy by the policyholder. If a policy is terminated prior to maturity, the life insurance company pays a defined cash surrender value to the insured person.
The managers of MPC Capital's life insurance funds select the most suitable policies available for sale and pay the policy holder an amount which is higher than the cash surrender value but lower than the actual value of the policy. Investors benefit from this purchase price difference.
In addition to the potential yields, investors are also interested in the safety of a fund concept. Especially German and British life insurance funds have several safety advantages.
German life insurance policies benefit from a guaranteed minimum rate of return, investment laws and rules as well as the Protektor rescue company. Safety elements of British policies include the guaranteed amount insured and the guaranteed annual bonuses, the very rigorous Financial Services Authority and the Financial Services Compensation Scheme. As a result, life insurance funds investing in German or British policies offer both attractive potential yields and effective investor protection.
|
