Loans Against SLS

Background of SLS Policies Market:

Critical to the structure is the acquisition and maintenance of a portfolio of Senior Life Settlement Policies (SLS Policies). In 1998, the concept of a Life Settlement was introduced. A Life Settlement involves the sale by a senior policy owner (age 65 or older) of an existing life insurance policy for a cash settlement.

Click here (opens in a new window) for more on the background of Senior Life Settlements.

This Senior Settlement will be less than the death benefit, but more than the cash surrender value. A Life Settlement involves the sale or transference of an existing life insurance policy in exchange for compensation, monetary or otherwise. It is an invaluable service for those in need of financial assistance or a timely alternative for senior individuals re-assessing their estate planning situation.

When should a Life Settlement be considered?

When life insurance premiums become too expensive to continue
When re-evaluating your estate planning
When a key man of an organization retires
When there is a change in your health condition
When the policy may be approaching a lapse
When considering purchasing new insurance coverage, such as Long Term Care coverage.

SLS Portfolio Collateralization:

We have access to a well rated international lending source that will lend against portfolios of Senior Settlement Policies. The general criteria are:

The lender will leverage SLS portfolios using the formula below.

Minimum Proceeds to Borrower $100 million

Minimum 50 lives, $1 million face value each.

They will loan based on the diversification of policies, types, LE etc. however in approximation they lend 60% less a discount factor to LE.

If the loan proceeds are used to purchase more policies then they will lend more... etc , etc. This way you can get to 3-4 times leverage.

As time passes to the average LE they will lend more.

The loan is a floating rate about 8.5% now.

Acceptance:

In order to enter this program, a project must be accepted by Intelligent Funding and its partners. This process is achieved by sharing a two to five page Executive Summary (which includes detailed financial projections, background of the principles, and a compelling case for significant profits). Upon submission of the Executive Summary, we will obtain initial permission to proceed or a request for additional information. Once the project has been initially accepted into the program, a detailed Letter of Interest is generated. This will include an initial schedule of events leading to the closing of the transaction. This schedule usually lasts approximately 90 days, from start to closing.

Loans Against SLS Portfolios:

SLS Portfolio Collateralization:

Acceptance: