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Benefits of a Secondary Markets

Benefits of a Secondary Markets. A unique investment Benefit for buyer & seller No maintenance, inventory only Premiums Century old business - Insurance. Safety. Backed by America’s oldest, and financially sound life insurance companies.

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Benefits of a Secondary Markets

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  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 America’s 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?

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