As everyone knows, HYIP investments are risky. To the uninformed its the equivalent of throwing a pound in a wishing well, and expecting 2 or 3 to splash back out. In truth, despite the mass of information on the Internet, there simply isn’t a definitive yes/now answer for the inexperienced. Some time ago, I theorised that it would be possible to insure investments against scams. Although by some the idea was ridiculed, I was and still am convinced that the concept is good. Read on, and I will explain all the pros’s and cons, you’re free do decide yourself the merits of the service.
Lets take by way of example a typical Internet user that decides to try HYIP investments, lured by the promise of high returns in a short time frame. This person knows nothing of these sites, has no regularly updated information to look through and even if they did the site could turn sour the second hard earned money is invested.
So what happens when they try to withdraw the apparent win-fall? In a nutshell, nothing. They receive no payment and have no-one to contact. It is possible to report the incident to a merchant provider but this invariably will not result in the return of spent dollars. Another victim is created with no hope of ever seeing their cash again.
Now consider the difference that a definitive result would make after requesting an insurance policy. If the HYIP to be covered is on the insurance blacklist, or has been reported by other investors as a scam, the policy will simply be denied. From this point on, anyone foolish enough to make an initial spend with the site has only themselves to blame.
The other possibility is that the quote is accepted. Only two possible outcomes can remain. a) The investment is successful and the policy holder gets paid as promised, or b) The site fails to pay out and the policy holder becomes a victim with a difference. They will get their initial spend returned. In this case, the claim results in the HYIP being blacklisted, thus preventing further victims.
To some this seems too good to be true, but lets break it down into component parts and assess it more closely.
Hyip’s (High yield investment programs) promise seriously high returns in a very short period of time, often hours or days. Even the best forex traders couldn’t promise these types of profits indefinitely. Its possible that they will succeed in the short-term, but its unlikely to be sustainable and so the program fails.
The HYIP insurance is somewhat different, with the policy costing 25% of the intended investment amount. It still means that the premium must be multiplied more than 4 times to cover any possible claim made. However, for the system to be fair both in terms of the investor and the site owner, it will take a few days to be sure that no response is forthcoming from the site following a payment failure. The insured investor then has to make a claim, provide evidence of the investment and all attempts to resolve the situation amicably. The insurance provider also will make reasonable attempts to contact the site owner and merchant provider. At which point it is possible to grant or deny the claim based on the results. This is a considerably longer period of time, over which the premium cost has been invested wisely resulting in the ability to process the claim and return the lost investment amount. Winning investments provide the insurance service with the necessary profits to be viable since the same investments were made while the policy was valid.
So you see, the fundamental difference is time. Realistic time frames, compensating for the unrealistic but highly attractive profits. My advice is to keep your money safe, insure your investments. If you’re lucky you’ll win, if you’re not at least you won’t make a loss.
Billy Middleton is the creator of the Safepay Verified the new poundpyramid system where you earn a FIXED return of Â£25000 per share which also contains the Pyramads banner promotions system. Now featuring the unique HYIP insurance service