LIFE SETTLEMENT TRANSACTION PROTOCOL

A successful life settlement investment program requires that the investor work with a partner experienced in sourcing, originating, underwriting and servicing settlement cases. Life Settlements are complex transactions. Asset Life will enter an Origination and Servicing Agreement with separate investor clients which sets out the terms and conditions under which Asset Life will facilitate the purchase by our clients of eligible life insurance policies and the ongoing services Asset Life then provides.

In turn, Asset Life has management and service agreements within the USA to source and acquire eligible life insurance policies meeting the investment criteria for each institutional investor client. Asset Life administers, manages and services the policies in association with its USA counterparts. The typical institutional investor will appoint a trustee or other fiduciary intermediary (“Trustee”) to act as custodian and disbursement agent.

Once Asset Life confirms initial eligibility requirements are met, the insured’s medical records are then sent to two medical evaluators for a life expectancy rating. Given the initial two medical evaluations meet our life expectancy requirements Asset Life arranges a third independent medical evaluation the results being exclusive to Asset Life. These results are used for the pricing model calculations If a pricing proposal for purchase of the policy is to be extended to the owner, the results of the life expectancy evaluations, along with financial information derived from a policy illustration generated by the insurance company that issued the policy, serve as the basis for determining the bid price that will meet investment criteria as established by the investor. If the policy owner accepts the bid and sells his/her ownership interest in the policy, the policy owner relinquishes ownership and beneficial interest in the policy. Upon the insured individual’s death, the investor’s designated beneficiary receives the death benefit of the policy.

SUPERANNUATION TRUSTEES

Why should a member of your fund be concerned that their retirement benefit is at the whim of economic climate?

The primary concern of most Trustees is to ensure that member’s monies are protected and that all decisions made are in the best interests of their members. 

We hope you find our Explanatory Guide constructive and easy to follow. Life Settlements are not correlated to other markets or changes in economic circumstances.

Institutions such as GenRe, a unit of Warren Buffet's Berkshire Hathaway have embraced Life Settlements as an alternative asset class. Others following Warren’s lead were Credit Suisse First Boston, GE Capital, DG and Dresdner’s just to name a few. Bernstein Research projected that the settlement business could grow to as much as US$160 billion over the next decade.

We believe that it is evident from our explanatory guide how transparent our services are and by that transparency a benefit to any investor.

We would welcome the opportunity to discuss with you in more detail the advantages and benefits to investors by utilising our services in the acquisition of life settlements.