Since 2000 several life settlement companies have been offering this product here in California. However, the way many of these companies structured their investment left their clients exposed to unnecessary risks and additional out of pocket costs.
The Old Way:
Many of these companies would place your funds in one or multiple policies and put a portion of those funds into a “policy maintenance reserve account." This account would pay the premiums (cost of insurance) and other costs of the policy through the life expectancy of the insured. If the insured lived beyond that life expectancy then the reserve account would become depleted, meaning investors now had to immediately pay out of pocket for the premiums. If a case matured early, the life settlement company would pocket the remaining reserve funds as added profit to themselves.
The EquiLife Way:
We have reduced the chance that you will pay out of pocket for a capital call. Investors purchase life settlements from EquiLife as a pool of policies; the investor owns a portion of each policy. A policy maintenance reserve account serves the entire pool. If a policy goes longer than expected, maintenance reserve funds protecting the remaining policies are used as a backup plan to pay that policy's additional costs, so the investor doesn’t come out of pocket for the capital call. When any policy matures "early," that policy's reserve funds remain in the account to help pay for future costs of the remaining policies in the pool. When the final policy in the pool matures, if there are funds left over in the reserve account, those funds are returned to the investor. Unlike other life settlement companies, we don’t pocket those funds - they belong to you!
*This marketing is intended for qualified California residents who have the financial means, experience, and knowledge to make investments into complex and illiquid financial products. It is intended for educational purposes only and should not be construed as investment or financial advice. Capital calls can become necessary, and due to the fact that life expectancies cannot be guaranteed, returns may take longer than expected to be realized. Review the offering documents for details.