FAQ | EquiLife LLC

What is the minimum investment into EquiLife Life Settlements?

$10,000 for a Cash/Non-qualified Investment, $25,000 for a IRA/Qualified Investment
What costs are associated with EquiLife Life Settlements?

If you invest with cash, the only cost occurs if there is a capital call and the policy maintenance reserve account is depleted. At EquiLife, we try keeping investor costs to a minimum; that is why we have gone beyond other companies by structuring a pooled policy maintenance reserve account to reduce the chance you ever pay out of pocket. If you invest with a retirement account, EquiLife will pay any fees associated with your account and this investment for two years per $25,000 invested. This is not the case when investing with other companies, and will increase your return when you invest with us.
Which IRA Provider Do You Use?

When you invest with your retirement funds EquiLife will help you set up a "self directed IRA”. We prefer to use IRA Club. They have low rates, excellent customer service, and are based in Chicago, Illinois. If you already have a self directed IRA with another provider we can work with them instead. If you have a retirement account with a traditional institution, we can assist with the transfer of funds to your new self directed IRA. We pay all costs associated with the transfer or account set up. Your transfer will be tax deferred, meaning you will not pay any taxes for moving your money into the new account.
What are the risks?

As with any investment there are risks associated with investing in life settlements. However, EquiLife has taken steps to reduce those risks. The main risk facing the investor is longevity; that is, the life expectancy of an insured of an owned life settlement. The industry standard is to order life expectancy reports from medical experts to determine the insured’s life expectancy. There are no guarantees that the policy will mature "on time." When a policy goes beyond life expectancy the policy maintenance reserve account may become depleted. This means capital calls can occur which will reduce your return on the investment. In the most extreme theoretical case, an insured could live so far beyond life expectancy that an investor could lose principal.
How is the life expectancy determined?*

Before a life settlement company purchases a policy it hires a life expectancy company to determine how long the insured is expected to live. Life expectancy companies are comprised of doctors who typically review more than 200 pages of documents to determine the insured’s anticipated life expectancy. These documents include medical records, family history, past life insurance applications, and actuarial tables. These reports are available to you upon request.
Is this legal?

Yes. For over a hundred years people have been selling their life insurance policies for a cash settlement. In 1911 the Supreme Court ruled in Grigsby v. Russell that selling and buying a “life settlement” is a legal transaction, no different than selling or buying any other asset. Life settlements are further regulated in California by California Senate Bill 1837.
Are life settlements viaticals?

Though life settlements and viaticals may seem similar, there are some distinct differences. Life settlements deal with senior citizens who sell off their policies. Their life expectancies are usually between 3-10 years, and the insured may suffers from some type of chronic illness. With viaticals, the insured selling his or her policy is facing a life-threatening illness and has less than a 2-year life expectancy. Most insureds are younger - 30-60 years old. With the progress of modern medicine, some of these people are cured of their illness and the cases can go on for decades. EquiLife believes viaticals have too much risk due to the insureds' ages. With life settlements, the insureds' ages plays a major role in ensuring that the policies do not go on for an excessive period of time.

*Life settlements offered through EquiLife LLC are only available to qualified investors who reside in the state of California. Each investor must have a net worth that exceeds $150,000 excluding the fair market value of their home, furnishings, and automobile, and meet other financial and eligibility requirements. EquiLife LLC doesn't give investment, financial, or tax advice. Investors must consult their own legal, financial, and tax advisors to determine if EquiLife LLC™s offerings are appropriate for their individual investing goals. Life settlements, as with any other investment, involve a degree of risk and are intended for sale to investors capable of assuming the risks involved with this product. The information provided here is for marketing purposes only. Refer to the investment documents for a complete understanding of the benefits and risks involved prior to investing.