This information is for broker/agent use only. Not for public use. This information does not This information is for broker/agent use only. Not for public use. This information does not comprise an offer to sell securities. All information and representations regarding our service can comprise an offer to sell securities. All information and representations regarding our service can

be found in our Purchase Agreements. be found in our Purchase Agreements.

609 Deep Valley DriveSuite 200

Rolling Hills Estates, CA 90274Ph (310) 265-9009Fax (310) 347-4191

www.acclivitywest.comjc@acclivitywest.com

What is a Life Settlement?What is a Life Settlement? In 1911 the Supreme Court ruled in Grigsby Vs Russell that

insurance policies are legally viewed as financial assets which may be sold to a third party, just as any other tangible investment can be sold at the owner's discretion.

Life Settlements are an important development in the financial services industry in that they have opened a large and growing secondary market for life insurance in which policy owners can access fair market value for their policies, rather than letting the policy lapse or accepting the lower cash surrender value from the issuing life insurance company.

Many states now require Insurance Companies to advise their insured's of this market place as an option to letting a policy lapse or cancelling for the current cash values

Defining the Terms Defining the Terms A Life Settlement is a financial transaction in which a life

insurance policy owner possessing an unneeded or unwanted life insurance policy sells the policy to a third party at a discount of the face value. Generally speaking, life settlements represent insureds which are 65 years of age or older with life expectancies ranging between 3 and 15 years. These insureds typically have age related health concerns.

A Viatical Settlement is a financial transaction in which a terminally ill life insurance policy owner sells their policy to a third party at a discount of the face value. Viatical‘s typicaly represent insureds with a life expectancy of 2 years or less.

Why woulda policy owner

sell their policy?

Premiums paid by the policy holder become unaffordable and the policy may lapse

Estate planning needs have changed

Funds may be needed for long term care

Beneficiaries may have changed due to death or divorce

Disposal of key man insurance or other business related insurance

Changes in needs for the coverage

A GROWING A GROWING MARKETMARKET

Life Settlements are considered to be a new asset class and is a thriving industry in many countries throughout the world.

The market includes buyers such as hedge funds, private equity groups and banks in the US, Asia and Europe.

As indicated in the graph to the right; the life settlement industry has shown a positive growth year after year for the last 10 years. *Estimates project transactions to exceed $160 Billion in year 2030.

* 1. Life Insurance Long View — Life Settlements Need Not Be Unsettling; Bernstein Research Call; Kamath,

Suneet and Timothy Sledge, March 4, 2005; page 8.

Who is investing?

Robust Secondary Marketo Healthyo Legitimateo Well-Fundedo Growing

Mature Institutional Marketo Recognizable and Credible Buyers Include…

• Deutsche Bank, Chase, GE Capital, Citibank, Barclays Capital, Lloyds of London, Wachovia, US Bank & Trust,

Raymond James, Berkshire Hathaway, Credit Suisse

Why do institutional buyers purchase life settlements?

Essentially for two reasons:Essentially for two reasons:

1.Settlements are inexpensive in relation to their intrinsic value.

2.They represent a non-correlating asset class. One that is not predicated upon stock or bond market performance.

Measuring the History of the Markets

5 Year Rate of Return of the Major Indexes

“What’s in it for me”?

Strong Returns Potential for early maturities Viable alternative to traditional fixed instruments

Diversification Non-correlating asset to the stock or bond markets, thereby shielded

by it’s fluctuations and losses Separate and distinct asset class

Inexpensive Deeply discounted A rated or better life insurance policies Strong intrinsic value

Unique Low maintenance Easy to manage with complete control

How Does This Investment Work?

* Variable in Equation is # Years Paid

Policy Face Amount

Policy Acquisition

Cost

Annual Premiums

# Years Paid*

Total Investment

Return

Total Investment

Return

# Years Paid*

Average Annual Return

Calculate “Total Investment Return”

Calculate “Average Annual Return”

Life settlements have been referred to as sum certain investments. This is because the death benefit is a set amount. The determining variable is when

the investor collects the benefit.

*Typical Annual Premium Range: 3% - 8%**IRR is calculated at year end maturity values which include the cost of annual premium.

This chart is for illustrative purposes only and is to be used as a reference tool. No specific return on investment for any particular policy is guaranteed. Actual return will depend on the individual circumstances of each specific policy. Additionally the above numbers may include slight rounding.

IRR CalculatorIRR Calculator

HOLDING PERIOD IN YEARS

LE (years) *Annual % of

Prem/FaceAnnual Premium in

$USDFace

AmountInitial Acquisition

Cost **Year 1 **Year 2 **Year 3 **Year 4 **Year 5 **Year 6 **Year 7 **Year 8 **Year 9 **Year 10

3 8.00% $20,000 $250,000 $112,500 88.67% 31.96% 15% 7.47% 3.53% 1.25% -0.14% -1.03% -1.61% -2.00%

4 5.00% $12,500 $250,000 $106,500 110.08% 45.05% 24.53% 15% 9.58% 6.29% 4.12% 2.63% 1.57% 0.79%

5 3.00% $7,500 $250,000 $106,000 120.26% 53.30% 31.51% 20.95% 15% 10.92% 8.25% 6.33% 4.89% 3.81%

Investment CharacteristicsInvestment CharacteristicsMinimum Investment:

$50,000.00

Type: Non-Qualified (Trusts, Individual, Joint) and Qualified (IRAs, 401(k) Rollovers)

Life Expectancy Range:Between 1 & 6 years

Insurance Policies:All policies are past the two year contestability period and are A rated or better at time of sale.

Investment CharacteristicsInvestment CharacteristicsSafety:

Policies are issued by some of the oldest and most financially sound insurance carriers in the industry. All policies are rated A or better by A.M. Best at time of purchase.

Liquidity:This is a buy & hold investment without an exact maturity date such as a zero coupon bond.

“What Acclivity West Provides” Services similar to that of a Real Estate Agency, i.e. Remax Realtors.

We act as the listing agency for life settlements which are already on the secondary market.

We facilitate the acquisition of these policies according to the buyers specifications.

We enable retail buyers to participate in a market which is dominated by multi billion dollar institutions.

Timely and efficient service.

As in a Real Estate transaction the purchaser never writes a check to the agency but rather the funds are held in escrow with an intermediary company.

Therefore the funding of transactions are handled by Sunwest Trust, Inc.,

which means purchasers never write a check to Acclivity West.

Sunwest Trust serves as an independent escrow agent.

Sunwest Trust is empowered to act as an escrow agent on behalf of the client’s transaction.

Sunwest Trust establishes an escrow account that facilitates the flow of funds among the parties.

Acclivity West LLC does not actively manage any funds within the account.

Escrow & Trust ServicesEscrow & Trust Services

To contact Acclivity West, LLC.:

609 Deep Valley DriveSuite 200

Rolling Hills Estates, CA 90274Ph (310) 265-9009Fax (310) 347-4191

www.acclivitywest.comjc@acclivitywest.com