PREMIUM OPTIMIZATION AND SHADOW PRICING SERVICES

Many life settlement servicing companies refer to premium optimization as the process of calculating minimum premiums. This is almost always done using an industry standard pricing model rather than accepting the insurance company’s level pay premiums as illustrated. Noble takes premium optimization one step further. We perform a comprehensive review of each policy and break down the nuts and bolts using our own proprietary models. Certain products have complex features, such as shadow accounts or secondary no lapse guarantee accounts, that cannot be optimized by standard pricing software. We find opportunities that standard pricing models cannot accommodate and in some cases the technical analysis necessary to optimize these polices is beyond the capability of most providers and servicers. Noble can provide efficient premium optimization and shadow pricing services, which can significantly enhance a policy’s economics for our clients. Thomas Schantz Life Settlements

ORIGINATOR

We can assist our clients in effectively identifying and acquiring the appropriate policies for their life settlement portfolio by acting as the Originator. Using Noble as an Originator would benefit our clients in the following areas:

1. Policy Sourcing: we have developed many relationships over the years with individuals and companies who source policies on the secondary and tertiary life settlement market. This gives us sufficient policy flow to be able to properly fulfill any life settlement demand.
2. Policy Acquisitions: our experience helps us understand what prices policies should sell at and enables us to negotiate the best price for our clients and enhance fund economics.
3. Policy Due Diligence: each policy that we acquire goes through the necessary due diligence that may get overlooked if not using an Originator who has the proper experience. This could leave you with an asset that could be contestable by the insurance company down the road. This is a risk that is not worth taking and never recommended.
4. Policy Longevity and Enhanced Client Protection: as policies don’t always mature at the life expectancy, we try to make sure that the policies we buy can withstand paying ongoing premiums beyond life expectancy while still providing a positive return to the client.

SERVICER

We can assist our clients in the ongoing management of their policies or portfolios by acting as the Servicer. This will help our clients effectively maintain the policies and coordinate fund cash flows after the policies have been purchased. In this capacity, we can do all of the following:

1. We determine and coordinate the optimal premium payments that need to be made to the insurance carrier.
2. We analyze the portfolio on an annual basis to determine if the premium reserve holds sufficient funds to pay the upcoming premiums or whether or not the fund will require premium contributions for the year.
3. We engage tracking agents in order to monitor the health status of the insured.
4. Upon maturity, we assist in obtaining the death certificate and filing the claim with the carrier so that clients can receive distributions in a timely manner.
5. If necessary, we can coordinate the sale of any outstanding policies. Thomas Schantz Life Settlements

PORTFOLIO MANAGER AND FUND CONSULTANT

For institutional funds and clients looking to structure a large life settlement investment fund, Noble can consult and act as the portfolio manager in order to effectively purchase policies and properly manage the ongoing cash flows of the funds. Using Noble as a portfolio manager provides our clients with the following benefits:

• Fund Structuring and Planning: our industry experience and extensive knowledge of how to best utilize this asset class and structure it to best meet the clients’ preferences while protecting them from the many complexities within the industry.
• Policy Sourcing: we have developed many relationships over the years with individuals and companies who source policies on the secondary and tertiary life settlement market. This gives us sufficient policy flow to be able to properly fill the fund.
• Policy Acquisitions: our experience helps us understand what prices policies should sell at and enables us to negotiate the best price for our clients and enhance fund economics.
• Policy Due Diligence: each policy that we acquire goes through the necessary due diligence that may get overlooked if not using an Originator who has the proper experience. This could leave you with an asset that could be contestable by the insurance company down the road. This is a risk that is not worth taking and never recommended.
• Policy Longevity and Enhanced Client Protection: as policies don’t always mature at the life expectancy, we try to make sure that the policies we buy can withstand paying ongoing premiums beyond life expectancy while still providing a positive return to the client.
• Premium Optimization: we use internal and proprietary models to calculate the minimum and optimal premium payments on each file, which can significantly enhance the economics on each file that would have otherwise not been achieved without the experience that Noble has.
• Ongoing Assistance and Servicing: we assist in the ongoing management of the fund and can also act as a servicer for our clients in order to help maintain the policies and coordinate fund cash flows after the policies have been purchased. In this capacity, we can do all of the following:
  • We determine and coordinate the optimal premium payments that need to be made to the insurance carrier.
  • We analyze the fund on an annual basis to determine if the premium reserve holds sufficient funds to pay the upcoming premiums or whether or not the fund will require premium contributions for the year.
  • We engage tracking agents in order to monitor the health status of the insured.
  • Upon maturity, we assist in obtaining the death certificate and filing the claim with the carrier so that clients can receive distributions in a timely manner.
  • If necessary, we can coordinate the sale of any outstanding policies. Thomas Schantz Life Settlements

LIFE SETTLEMENT INVESTING AND CONSULTING SERVICES

Noble can provide consulting services to any life settlement investment structure. If you currently have a fund or are planning to put one together, you will need an expert in acquisitions, servicing, premium optimization, policy valuations, and so on. Please see our services that we can provide above and contact us to assist with the efficiency of your life settlement investment offerings.

Noble can structure and offer just about any life settlement investment that fits a client’s needs. From custom portfolios for large institutional investors to whole policy sales to individuals, Noble can fulfill any type of investment within the life settlement market. If you have a desire to put together a specific life settlement investment, please contact us and we can help you to get involved in this unique asset class.

*Life Settlement Investing is for accredited investors only, and Noble will require supporting information to verify accredited investor status. The above information is meant for general informational and educational purposes only and does not constitute, and is not intended as, any form of investment advice or a recommendation or suggestion to buy or an offer to sell or a solicitation to buy any security. If you are an Accredited Investor and want more information, please contact Noble.

LOW MARKET CORRELATION

With several instances of major market volatility since the year 2000 and the adverse effects these instances have had on many investment portfolios, more investors and financial experts are looking at other financial alternatives to help boost returns. An investment in a life settlement offers an excellent way to diversify any portfolio and also serves as a great defensive strategy since the return is generally not dependent on or affected by a soft economy, stock market volatility, interest rate fluctuations, unexpected global events, or other traditional economic factors. “Life settlements are one way to reduce a portfolio’s exposure to sudden downturns in the stock and bond markets,”-Conning Research & Consulting, Inc. 2007 study, “Life Settlement Market: Increasing Capital and Investor Demand”. The life settlement market was established by institutional investors and Wall Street firms, such as Berkshire Hathaway and Deutsche Bank, who have invested in life settlement portfolios and have been aware of the advantages of this asset class for years. Thomas Schantz Life Settlements

STRONG RISK ADJUSTED RETURNS

Investing in life settlements provides for the opportunity to earn attractive yields, particularly in today’s low interest rate environment. Projected returns for life settlement investments can typically range from 6% to 10% in a fully managed fund scenario, depending on different fund attributes.

These returns are certainly better than any of the equity markets and major market indices since the new millennium hit. The Dow Jones Industrial Average has returned an average of around 4% from the year 2000 through 2019. Given the historic performances and current economic, political and global landscapes, market indices could continue to be uncertain for the foreseeable future. Thomas Schantz Life Settlements

If you have any need for life settlement services or if you are an accredited investor looking to take advantage of the asset class, please contact us today!

(609)-357-0097

support@noblelifecapital.com