Life Settlements are simply the sale of an existing life insurance policy that is unwanted or unneeded to another party. 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 (death benefit).

Life Settlement transactions are a true win-win…

An individual gets to sell their unwanted life insurance policy for a figure often many times the cash surrender value. In return, investors purchase these policies at a significant discount from their face value, often achieving significant returns upon maturity while having the security usually only available with treasury bills and bonds.

SAFETY & RISK

The underlying asset which provides the return in a Life Settlement investment is a life insurance policy. We only purchase policies from AM Best B+ rated companies which are considered to be among the most financially secure companies in America. To put the risk into perspective, Life Settlements are considered to be about as secure as U.S. treasury bonds.

Facts regarding the safety & risk with Life Settlement investing:

• Life Settlements are not affected by interest rates, stock market action, inflation, elections, terrorists or any other type of variable that other investments are vulnerable to
• Even in the great depression, life insurance companies paid on life insurance policy claims
• Just as life insurance lets you sleep at night knowing your loved ones will be taken care of in your passing, investing in life insurance via Life Settlements allows you to sleep sound knowing your future is secure even if you live beyond your years

RATE OF RETURN

Certainty of return comes from the inherent face value that life insurance holds and is guaranteed to produce upon maturation. Life Settlement investing has historically seen market leading returns.

Facts regarding your rate of return with Life Settlement investing:

• 16 year history with an average ROI of 15.83% per annum*
• Life Settlement policies are typically purchased at 50 cents on the dollar with an expected maturation of between 2 to 6 years, so on average your money can double every 4 years!
• If returns in the future were cut in half, Life Settlements would still outperform most any other investment

SAMPLE POLICY TRANSACTION FROM START TO FINISH

Step 1 - Prospective Life Settlement policy is found

Seniors wishing to sell their life insurance policy typically work through their financial advisor or insurance agent to offer their policy up for sale. In a similar way that one would shop to get the best quote on car insurance, seniors shop to get the best offer for their life insurance policy.

Most of the offers come from companies that buy policies for institutional investors like hedge funds, pension funds and banks. While it would be difficult for individuals to compete and purchase policies by themselves, Niche Investment Group can connect you with a company that will organize and coordinate the process whereby you and multiple other investors purchase fractional shares. This allows you to invest in Life Settlements without needing to shell out the money needed to purchase an entire policy or multiple policies by yourself.

Step 2 - Analysis

Not every life insurance policy makes a sound investment. Prospective policies are analyzed to ensure all of the following:

•  Policy must be transferable
•  Policy must be past the suicide date
•  Policy must be past the contestability period
•  Life expectancy of policy holder must meet investment objectives

Step 3 - Transaction

Niche Investment Group works with you, a Life Settlement transaction company and an independent escrow agent to coordinate the purchasing of your fractional shares. As a diversification strategy, we always recommend the purchasing of multiple fractional shares instead of just one.

We recommend that all funds used in the transaction be held in an escrow account and managed by an independent escrow agent. Additional funds are also typically left in escrow for future premium payments.

Step 4 - Holding Period

For the duration of the policy, premiums are maintained using funds left in escrow for such purpose. Should the subject of the insurance policy live beyond life expectancy, additional funds will have to be provided to cover premiums.

Step 5 - Maturation

Policy Matures – Investor receives the pro rata share of all proceeds plus any unused premiums held in escrow.