03/2006

Presented by

WHAT IS A LIFE SETTLEMENT?

47% of seniors over the age of 65

own life insurance policies.

– Bernstein Research 2005

A life settlement is the sale of an existing life insurance policy that gives the policy owner a cash settlement in excess of the current cash surrender value.

Universal

Whole Life

Term

Variable

Joint

Group

Key Man

WHAT TYPES ARE INCLUDED:

Anyone over the age of 65 years who has life insurance whose circumstances have changed since the original policy was issued.

WHO MAY QUALIFY?

Health

PersonalFinancial

The Life Settlement market grew

to $5.5 Billion in face amount in

2005 thanks to available capital

and continued aggressive

marketing to producers.

– Conning Research 2005

Under-Performing Policies

Estate Size Reduction

Family Issues

Divorce or Bankruptcy

Deterioration of Health

CHANGING CIRCUMSTANCES…

Retirement

Sale of Business

Death of Spouse

Estate Tax Reform

1035 Exchange

>> PRODUCERS FINANCIAL PLANNERS ATTORNEYS ESTATE PLANNERS NON-PROFIT ORGANIZATIONS

&An Innovative

Wealth

Estate PlanningTool

LIFE SETTLEMENTS

Those who no longer need insurance

Those who are utilizing a Life Settlement

to fund an alternative investment

RECENT LIFE SETTLEMENTS

TWO TYPES OF PROSPECTS

>> PRODUCERS FINANCIAL PLANNERS ATTORNEYS ESTATE PLANNERS NON-PROFIT ORGANIZATIONS

59% of life settlement clients are

between the ages of 71-80.

– National Underwriter Magazine 2005

FEMALE – Age 72$3,000,000.00 UL Policy

• Small Cash Value

• Under-Performing Policy

CASE HISTORY EXAMPLE 1

LIFE SETTLEMENT SOLUTION

Settlement Amount of $840,000.00

*Insured purchased an annuity with the proceeds

MALE – Age 65$4,000,000.00 UL Policy

• Cash Value $90,000.00

• Retiring Executive

CASE HISTORY EXAMPLE 2

LIFE SETTLEMENT SOLUTIONSettlement Amount of

$525,000.00*Received $435,000 over surrender

MALE – Age 69$3,000,000 Term Policy

• Client Was Going To Lapse• Divorce Decree

LAPSE EXAMPLE

LIFE SETTLEMENT SOLUTIONSettlement Amount of

$400,000.00

MALE – Age 777 UL Policies Totaling $13 Million

• Premiums $400,000

• Surrender Value $1.8 Million

NEW PRODUCT EXAMPLE

LIFE SETTLEMENT SOLUTIONSettlement Amount of

$2,562,336.00*Agent sold client $27mil of current generation UL and VUL policies

AGE 84 – Minor Health Issues$450,000 Policy

• Premiums $32,000

• Buy/Sell Agreement

• Deceased Partners

BUY/SELL EXAMPLE

LIFE SETTLEMENT SOLUTIONSettlement Amount of

$106,000.00

NewBUSINESS Opportunities

Referral fee from the life settlement transaction

MULTIPLE COMMISSIONS

Trailer commission on policy for agent of record

Investment or annuity commissions from the capital created from the life settlement transaction

Commission on new life insurance products that better suits your clients current needs

Commission on the conversion if the policy being considered is a term product

Commissions for referring other agents or agencies to Life Insurance Settlements Inc.

FROM ONE STRATEGY

SETTLEMENT TIMELINE

Upon Receiving the Following:

1. Complete application & sign authorization

2. Copy of photo identification

3. Copy of policy, if obtainable

Appraisal Process Consist of:

1. Collecting of policy and medical information

2. Complete initial underwriting of case

3. Send complete case to funding organizations

4. Negotiate and obtain offers or declinations

5. Communicate appraisal value and compensation

Completing the Settlement Process:

1. Contracts are delivered to the policy owner

2. Review, sign and return of settlement package

3. Recorded changes by insurance carrier

4. Escrow organization releases cash settlement to client

5. Client rescission period– Dependent on state

6. Referral source is compensated– Post rescission period

Powerful NewFINANCIALPLANNING

Tool…

How much will be received for a policy?

There are many factors that determine the offer amounts:

AgePremiumsClient’s HealthType of PolicyInsurance Company RatingPolicy SizeCompetitive BiddingState of Residency

GENERAL RULE: Age, health and future premiums are the primary factors that determine the amount of the Life Insurance Settlements, Inc. offer. Competitive bidding assures that you have found the highest offer.

PARAMETERS OF A LIFE SETTLEMENT

APPROACHING THE CLIENT

Proactive Way to Speak

Lower Premiums/Better Policy

Better Interest Rate

Manage Expectations of Client

Combined Strengths

Maximum Compensation

Unparalleled Expertise Since 1993

Marketing & Advertisement Support

Exceptional Service

Continuing Education Programs

LIS IS A NETWORK OF FINANCIAL

ADVISORS & AGENTS

As the industry grows, the

progression of stronger marketing

tools will be essential to educate the

consumer about the industry and the

benefits that are available.

OUR CORPORATE OFFICE IS LOCATED AT 550 WEST

CYPRESS CREEK ROAD, SUITE 300

FORT LAUDERDALE, FL 33309

Exclusive Funders

Long-Term Relationships

PROVIDER PARTNERSHIPS…

Core Competencies

Value Add

Building A Significant

Profit Center

COMPLIMENTARY SERVICE

61% of Agents stated they believe there is a substantial

potential for additional income from Life Settlements.

– Agent’s Sales Journal Life Settlement Survey 2005

No Cost

Liquidity

Fund Alternative Product

to Fit Current Needs

Relief of Premium Expense

Create a Better Solution for

their Current Needs

BENEFITS TO THE CLIENT…

EXAMPLES OF TAX BENEFITS

The following example shows a typical policy with a face value of $1 million, $55,000 of premiums paid and a cash surrender value of $70,000. For example purposes we will use a settlement amount of $200,000 paid to the policy owner. The tax position would be:

* Tax obligations will vary with the sale of an insurance policy. Life Insurance Settlements, Inc. does not make any representations as to the tax treatment of a sale of a life insurance policy. Life Insurance Settlements, Inc. strongly encourages you to consult with your tax advisor, Attorney or financial planner as it relates to your specific situation.

FRONT-END: If a policy owner sells a policy to a licensed settlement provider and the transaction has been consummated in accordance with the state’s viatical and life settlement laws and regulations (front-end), the client and his insurance advisor have not participated in a transaction regulated as a security.

FRONT & BACK-END OF A LIFE SETTLEMENT

BACK-END: If an insurance advisor is raising funds for financing entities or reselling purchased policies to individual investors (back-end) this, according to most states, would constitute a security.

PREQUALIFICATION RESULTS… Clients who qualify for life settlements can see what the highest purchase offer is.

If they choose to accept the payment, they have added bottom-line dollars to their asset base.

Those who don't qualify, they will find out the total liquidation value of that asset. Therefore they will be able to properly re-calculate their net worth and know their true financial picture.

550 WEST CYPRESS CREEK ROAD, SUITE 300 • FORT LAUDERDALE, FLORIDA 33309TOLL FREE 866.326.LIFE • FAX 954.315.2841 • WWW.LISETTLEMENTS.COM

Disclaimer: Life Settlement amounts are based on numerous factors. The case examples are for illustration purposes and does not represent future or previous offers, statements, percentages or amounts. Actual results will vary. The industry average purchase price obtained by viators ranges from 12-24% of the face amount of a qualified life insurance policy. Some or all of the proceeds of a life settlement may be taxable under federal or state income tax laws from the sale of one's life insurance policy. Advice from a professional tax advisor is recommended. Life Insurance Settlements, Inc. is a licensed broker or producer in the following states: AL, AR, AZ, CT, DE, FL, GA, HI, IA, ID, IN, KS, MD, ME, MN, MS, NC, ND, NJ, NM, NV, NY, OH, OK, OR, PA, TX, UT, VA, VT, & WI.