Q&A - How do Reverse Pension Plans work?

Q. What is the Principle of Reverse Pension Plans(RPPs)/Endowment Policies?

A. The company/program managers take out an insurance policy on your retirement (referred to as an "endowment" policy in some countries). The member sells the policy back to the company for a sum less than its face value, but a considerable amount more than if you bought one yourself and surrendered it.

The company/program cashes in each of these policies as each person reaches the age of policy expiry, ensuring a substantial income for years to come. The company/program has already had to borrow money to pay you and the premium, on the policy so they don't get the total value either, when it’s cashed in... but they do make more than each member does, which they should, for all the research and risk they take.

Q. What is a Reverse Pension Plan(RPP) & How they work?"

A. Perhaps the following is an easy way to get a handle on them and explain to others who may want to get involved.

So, "You pay $29.00 and then some months later you get $30,000.” No, you don't need to do anything for it, except prove you are a real live person, and not older than 66." (Please note that you will have to verify your identity, just as you would have to if you were buying a normal insurance policy.)

Please note you do NOT invest $29.00 and get more than a 1,000 times that back. This is Not an investment. All that $29.00 gets you is membership in an organization. So how do you get your $30,000?

Well, you're probably familiar with the concept of "benefactor", that's where in various sorts of web programs (or even offline private programs), someone has realized that they can make a great deal of money by paying someone else into the program (in their down line usually, and so on and so on. In other words in the programs you may have come across, you do not have to pay the several hundred dollar entry cost, someone else pays it for you because they expect to benefit greatly by doing so. Well, in RPPs it isn't exactly like that but there is a similarity.

Each RPP has 2 MAJOR components (not to mention the minor but very necessary, components of Admin, processors, and members).

The 2 MAJOR components are the Insurer and the FINANCIER. The Financier is the one that is important to us, although he is not usually a person but a very wealthy institution. The Financier is important to us because he PAYS FOR US, not a few hundred dollars but more likely tens of thousands for each one of us! He/It "benefactors" us!

Why does he do this? Not because he thinks we're all good guys! He does it because he is involved in a fairly complex legal financial transaction with the Insurer and from it he will make a great deal of money, so much so in fact, that he can easily afford to pay us something like $30,000. In fact if he paid us much less than that, then he could be accused of profiteering and profiteering is the next best thing to a SCAM.

So this is all about BUSINESS. Why do they need us? Because the process would be impossible without us, because it would not then be legal. With us, it IS legal. For the more technically minded, the negotiable instrument that is generated is a pension-like single-premium endowment insurance, but we don't really need to concern ourselves with that. (Literally similar to you taking out an endowment insurance policy) Basically all they want from us is our names and the fact that we are below 66 years of age on payout of the funds. How about that $29.00? Well, they are businessmen and businessmen are not keen on carrying the entire admin costs, so we pay this small admin fee as our contribution. It is not enough to cover the running and processing costs of admin and processing, so we even get subsidized at this early stage

Q. Why would gun-shy people like us risk $29.00?

A. Because you can't afford NOT to!

Some say, "Well, I'm in; it's like a lottery ticket. If I lose $29.00 I will not really miss it and WOW! What a difference it would make to me if I win!"

Well, that's not the right attitude either because a typical lottery has odds of 10,000,000 to 1 against your winning. Then you really are, for all practical purposes throwing your money away!

Reverse Pension Plans(RPPs) on the other hand are SERIOUS BUSINESS, not the usual dog-eat-dog sort of business but a real and rare example of a Win/Win/Win situation, where all participants make money. Sure, think of it as a lottery if you want to but one where the probability is 100%. Actually, I don't believe ANYTHING is 100%,(That would make it perfect and no one or nothing is perfect) so let’s say your probability is 95% and you’ll probably be more comfortable with that (in fact 95% would still be too high a probability, if we did not have some sort of further evidence that RPPs are genuine.

These Pension Plans have succeeded in establishing a very unique plan around the basic idea of pension insurance with a reputable partner. When you become a member of a Plan, the pension insurance is purchased on your behalf. The $29.00 membership fee includes all the expenses involved in your contract and you will not be asked to pay any additional fees or expenses to receive the Compensation.

The next step towards the completion of their business plan is that our organization pledge the pension insurance contract of yours for xx% of the face value of $xxx,xxx giving a liquid assets of $xxx,xxx to proceed further. Out of this amount will be paid the single premium payment of member's insurance policy, worth $xx,000 (the anticipated average premium of 34 years old person).

Mortgaging the pension insurance contract is similar to property mortgaging when using the property itself as a collateral. The policy is a legally binding agreement given by a reputable insurance company.

Upon successful completion, members will receive a one-time Compensation of $30,000 paid out 4-6 weeks after all 5,500 contracts have been sold. This will close fairly quickly and say if you invite others, there is a small commission of 10% of the membership fee of $3.90 bonus per person you invite. In a perfect world we would all bring 10 people each to buy 2 contracts. As you can surmise, we are in a hurry to get the contracts sold so we can be paid.

I hope this explanation helps.