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609 Deep Valley Drive Suite 200 Rolling Hills Estates, CA 90274 Ph (310) 265-9009

609 Deep Valley Drive Suite 200 Rolling Hills Estates, CA 90274 Ph (310) 265-9009 Fax (310) 347-4191 www.acclivitywest.com jc@acclivitywest.com.

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609 Deep Valley Drive Suite 200 Rolling Hills Estates, CA 90274 Ph (310) 265-9009

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  1. 609 Deep Valley Drive Suite 200 Rolling Hills Estates, CA 90274 Ph (310) 265-9009 Fax (310) 347-4191 www.acclivitywest.com jc@acclivitywest.com This information is for broker/agent use only. Not for public use. This information does not comprise an offer to sell securities. All information and representations regarding our service can be found in our Purchase Agreements.

  2. Life SettlementsThe Secondary Life Insurance Market

  3. What is a Life Settlement? • In 1911 the Supreme Court ruled in Grigsby Vs Russell thatinsurancepolicies are legally viewed as financial assets which may be sold to a third party, just as any other tangible investment can be sold at the owner's discretion. • Life Settlements are an important development in the financial services industry in that they have opened a large and growing secondary market for life insurance in which policy owners can access fair market value for their policies, rather than letting the policy lapse or accepting the lower cash surrender value from the issuing life insurance company. • Many states now require Insurance Companies to advise their insured's of this market place as an option to letting a policy lapse or cancelling for the current cash values

  4. Defining the Terms • A Life Settlement is a financial transaction in which a life insurance policy owner possessing an unneeded or unwanted life insurance policy sells the policy to a third party at a discount of the face value. Generally speaking, life settlements represent insureds which are 65 years of age or older with life expectancies ranging between 3 and 15 years. These insureds typically have age related health concerns. • A Viatical Settlement is a financial transaction in which a terminally ill life insurance policy owner sells their policy to a third party at a discount of the face value. Viatical‘s typicaly represent insureds with a life expectancy of 2 years or less.

  5. Life Settlements“A Robust Market“

  6. A GROWING MARKET • Life Settlements are considered to • be a new asset class and is a • thriving industry in many • countries throughout the world. • The market includes buyers such • as hedge funds, private equity • groups and banks in the US, Asia • and Europe. • As indicated in the graph to the right; • the life settlement industry has shown a • positive growth year after year for the • last 10 years. *Estimates project • transactions to exceed $160 Billion in • year 2030. * 1. Life Insurance Long View — Life Settlements Need Not Be Unsettling; Bernstein Research Call; Kamath, Suneet and Timothy Sledge, March 4, 2005; page 8.

  7. Who is investing? • Robust Secondary Market • Healthy • Legitimate • Well-Funded • Growing • Mature Institutional Market • Recognizable and Credible Buyers Include… • Deutsche Bank, Chase, GE Capital, Citibank, Barclays Capital, Lloyds of London, Wachovia, US Bank & Trust, Raymond James, Berkshire Hathaway, Credit Suisse

  8. Why do institutional buyers purchase life settlements? Essentially for two reasons: • Settlements are inexpensive in relation to their intrinsic value. • They represent a non-correlating asset class. One that is not predicated upon stock or bond market performance.

  9. Life Settlements“The Opportunity“

  10. Measuring the History of the Markets

  11. 5 Year Rate of Return of the Major Indexes

  12. “What’s in it for me”? • Strong Returns • Potential for early maturities • Viable alternative to traditional fixed instruments • Diversification • Non-correlating asset to the stock or bond markets, thereby shielded by it’s fluctuations and losses • Separate and distinct asset class • Inexpensive • Deeply discounted A rated or better life insurance policies • Strong intrinsic value • Unique • Low maintenance • Easy to manage with complete control

  13. How Does This Investment Work? Calculate “Total Investment Return” Total Investment Return Policy Acquisition Cost Annual Premiums # Years Paid* Policy Face Amount * Variable in Equation is # Years Paid Calculate “Average Annual Return” Total Investment Return Average Annual Return # Years Paid*

  14. IRR Calculator Life settlements have been referred to as sum certain investments. This is because the death benefit is a set amount. The determining variable is whenthe investor collects the benefit. *Typical Annual Premium Range: 3% - 8% **IRR is calculated at year end maturity values which include the cost of annual premium. This chart is for illustrative purposes only and is to be used as a reference tool. No specific return on investment for any particular policy is guaranteed. Actual return will depend on the individual circumstances of each specific policy. Additionally the above numbers may include slight rounding.

  15. Investment Characteristics • Minimum Investment: $50,000.00 • Type: Non-Qualified (Trusts, Individual, Joint) and Qualified (IRAs, 401(k) Rollovers) • Life Expectancy Range: Between 1 & 6 years • Insurance Policies: All policies are past the two year contestability period and are A rated or better at time of sale.

  16. Investment Characteristics • Safety: Policies are issued by some of the oldest and most financially sound insurance carriers in the industry. All policies are rated A or better by A.M. Best at time of purchase. • Liquidity: This is a buy & hold investment without an exact maturity date such as a zero coupon bond.

  17. “What Acclivity West Provides” • Services similar to that of a Real Estate Agency, i.e. Remax Realtors. • We act as the listing agency for life settlements which are already on the secondary market. • We facilitate the acquisition of these policies according to the buyers specifications. • We enable retail buyers to participate in a market which is dominated by multi billion dollar institutions. • Timely and efficient service. • As in a Real Estate transaction the purchaser never writes a check to the agency but rather the funds are held in escrow with an intermediary company. • Therefore the funding of transactions are handled by Sunwest Trust, Inc., which means purchasers never write a check to Acclivity West.

  18. Sunwest Trust serves as an independent escrow agent. • Sunwest Trust is empowered to act as an escrow agent on behalf of the client’s transaction. • Sunwest Trust establishes an escrow account that facilitates the flow of funds among the parties. • Acclivity West LLC does not actively manage any funds within the account.

  19. THE END To contact Acclivity West, LLC.: 609 Deep Valley Drive Suite 200 Rolling Hills Estates, CA 90274 Ph (310) 265-9009 Fax (310) 347-4191 www.acclivitywest.com jc@acclivitywest.com

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