Benefits of a Secondary Markets

1
Benefits of a Secondary Markets

• A unique investment
• Benefit for buyer seller
• No maintenance, inventory only Premiums
• Century old business - Insurance

2
Safety

• Backed by Americas oldest, and financially sound
  life insurance companies.
• Principal is safe from reduction (it will not go
  down).
• Trusts holds all funds (they act as escrow and
  closing agent).
• All transactions are regulated by State,
  Insurance and banking commissioners.

3
Benefits of Life Settlements

• Protection of Principal - based on a unilaterally
  enforceable insurance contract
• Potentially Superior Return on Investment -
  potential annual yields of 10 or more
• No Market Volatility - not correlated to the
  equity or bond markets
• No Economic Volatility - not correlated to the
  economy in general
• Suitable for Qualified Funds (IRAs)
• True Diversification of Portfolio
• Self-Completing - cash proceeds at maturity of
  policies
• Escrow Services - to protect the transaction
• Disclosed Risk
• SEC Compliant - we satisfy all applicable
  regulatory standards

4
What Returns Are You Making Today?
Banking rates so high we wanted to make them big
enough for you to see.
3.28 3.66 3.85
AnnualPercentageRate
AnnualPercentageRate
AnnualPercentageRate
12-MONTH TERM
36-MONTH TERM
36-MONTH TERM
Minimum Balance 500
Minimum Balance 500
Minimum Balance 500
Bank Rates 04/06/05
5
Glitch
Usually, when one stumbles over something that
appears too good to be true, it is not true.
However, every so often, one discovers some
glitch in the marketplace where for some reason
the risk-return equation is out of whack. I
believe the Life Settlement market is currently
such a find. Carlton Breed - 2005
A Life Settlement is the sale of an existing life
insurance policy, of any individual 65 years or
older. The price of the policy is negotiated and
sold by the owner, at a discount to the face
amount. The purchaser then collects the full face
amount of the policy when the policy matures (the
death benefit).
Yearly Returns 18 to 22
What is the value of your account compared to
five years ago?
6
LE Maturity Performance

• How accurate is the Medical Underwriting/Life
  Expectancy process?

7
Purchasing Policies

• Acquiring policies from an insured with an A.M.
  Best rating of B or better.
• Use of a well-established escrow agent.
• Use of a well-established escrow depository.
• Proper medical underwriting.
• Acquisition of only non-contestable policies.
• Assuring that the policy is transferable.
• Assuring that there is no suicide exclusion.
• Determining total potential premium liability.

8
Relative Risk Continuum

• How do life settlements compare with other
  recognized asset classes?