THE OPPORTUNITY IN LIFE SETTLEMENTS 1

What is a life settlement? 2 A life settlement is simply the sale of an existing life insurance policy, of someone age 65 or above, on the secondary market for more than its cash surrender value.

There is a Reason Life Insurance Companies Have Billions of Dollars in Assets 3

Universal Policies 4 85% Do not end up in death benefits getting paid.

Term Policies 5 95% Do not end up in death benefits getting paid.

In 2010 Approximately 972 Billion in Face Amount of Life Insurance was Abandoned! 6

7 Life Settlements: A Solution to a Growing Problem For Seniors

Life Settlement vs. Cash Value 8 According to the U.S. Government and Accountability Office statistics (July 22, 2010), the average lump sum payment on a life settlement offer is 7 times more!

Cash Surrender Value vs. Life Settlement Payout The reason is simple as to why you should understand what the true market value of your policy is worth. If you are accepting the cash surrender value (CSV) on your life policy without considering the market value, you may be leaving money on the table. 9

10 “Should I… Keep paying premiums? Let the policy go?”  As clients get older, a life insurance policy may no longer be needed, or may become cost prohibitive to maintain.  Premium dollars may be better spent on retirement, long term care, maintaining lifestyle, other opportunities, etc. Policy Owners Face Decisions

Many Seniors wish to drop life insurance policies for various reasons.. 11  They may have outlived the risk  Spouse has passed away  They are divorced  Business partnership has dissolved  Key employee has retired after a long career  Cash to fund more cost effective coverage  Pay off debt or funds to invest elsewhere

Life Settlements: Good For You and Good For The Seniors You Serve! 12

13 ACTUAL COMMISSIONS TO AGENTS Below is a listing of actual closed transactions and the commissions the agents have enjoyed.

14 Why NOW is the Time to Get Involved in Life Settlements

15 Demographic Opportunities…  38 million people are over the age of 65  10,000 baby boomers turn 65 every single day for the next 20 years.  41% of seniors have life insurance (16 million) The Senior Market is Exploding:

16 An Untapped Market  $1.4 trillion of coverage on people over the age of 65.  In 2011, settlement market was $5 billion in face value, less than 1% of its potential.  90% of all polices never pay out a death benefit.  Point is…policy owners still appear to be unaware of the life settlement option. Market Facts: Source: Insurance Industry Statistics

Identifying Life Settlement Cases  General Case Specifications  Insureds aged 70+ or with health impairment  Life expectancy range is generally 15 years and below  Net Death Benefit in excess of $100,000  UL’s are ideal; however all policy types considered, even term policies that can be converted to a permanent policy 17

Who Are The End Buyers of Policies? 18 Major Banks Hedge Funds Wall Street Firms

Our goal is to build a quality team to provide public awareness of the benefits of life settlements. 19

Team Means: 20  Together  Everyone  Achieves  More

What is Your Role in the Life Settlement Business? 21 1.Educate insureds and those that serve seniors about life settlements. 2.Gather information from policy owners that are interested in life settlements and submit their information to our exchange.

22 The International Life and Structured Settlement Exchange SUBMISSION SETTLEMENT ILSS EXCHANGE BUYERS The exchange is managed by an experienced licensed life settlement broker.

Securing the Highest Offer 23 Past performance is not indicative of future results. Policy Specs: 77 Year Old Male; 8-10 Year LE; 4.1% premium; CSV < 1% The competitive bid system ensures the highest possible offer is achieved from the life settlement market.

 On-going training  Use of proven marketing resources and strategies  Working with an experienced team with access to 20 institutional buyers Giving You the Keys to Success 24

We Are Your Marketing Department 25

How Do I Find Prospects? 26

 Our proven networking strategy will help you establish a powerful circle of influence.  The goal is to build a circle of influence of individuals who have a relationship with your ideal prospects.  These include: estate planning attorneys, CPA’s, business brokers and CFO’s. Networking For Dollars: Build Your Circle of Influence 27

Charities, Non-Profits and Universities 28 Let us help build your gifting department

Working With Senior Oriented Businesses and Services 29

Why Life Settlements? 30 “…the life settlement option appears to be not only greatly beneficial for policy owners wanting to sell their policies, but also provides an interesting investment opportunity for institutional investors willing to include longevity risk in their portfolio and to commit for the medium term.” -Professor Naranyan Nail, London Business School “We believe the development of the secondary market for life insurance helps consumers by providing additional alternative.” -Morningstar “The fundamental reason for the rapid growth of the life settlement market is consumer value.” -Franklin, Templeton Investments

“The secondary market in life insurance policies is good for consumers.” -The Economist “Forecast show that over 25% of baby boomers will be unprepared for retirement and likely look to turn illiquid assets into cash.” -AARP “Seniors selling their life insurance into the secondary market receive an average 8 times their cash surrender value.” -Government Accounting Office (GAO) “Needless to say, seniors are looking for ways to bolster their sagging savings. Often they find that most valuable asset they can afford to part with is their life insurance policy, which can have substantial cash value. New alternatives have become available for those who no longer have a need for their life insurance policy. One of them is the life settlement business, a burgeoning multi-billion dollar industry that has exploded in recent years. Life settlements can be a worthy alternative for seniors who are considering the sale of their life insurance policy, and offer a higher payment than the cash surrender value offered by the insurance company.” -Senator Herb Kohl, Special Committee on Aging

Our Multiple Streams of Income Keep Growing 32 Structured Settlements Annuities Other billion dollar industries that need competitive bidding!

Our System Your key to multiple streams of income. 33

LIFE SETTLEMENTS: A TRUE WIN–WIN 34 THANK YOU FOR YOUR TIME