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The Cascade PortfolioTM Life Settlement Plan The Cascade PortfolioTM is a unique opportunity designed to deliver exceptional levels of return, whilst maintaining maximum security for the funds allocated. The client receives a predetermined, fixed rate of return, which is unaffected by external factors, such as interest rates, property or stock market values (non-correlated). It is a safe, high quality product allowing the client the ability to build a mid to long-term financial future either as a stand-alone entity or incorporated into a pension. Complete Life Settlements Ltd are now able to offer to offer the Cascade PortfolioTM from MOSAIC to our mortgage broker and IFA community. What is a Life Settlement? A Life Settlement is the sale of a life insurance policy by an American senior citizen for a lump sum that is attractively higher than the cash surrender value (3-5 times higher). Sellers use this service to raise cash or reduce living expenses by disposing of an unneeded or unwanted life insurance policy. The client (buyer of the policy) receives a predetermined, fixed rate of return, which is unaffected by external factors. Client Ownership The Cascade PortfolioTM is unique within the Life Settlements market place because the client has a direct interest in the policy which they are purchasing and so becomes a named beneficiary of the policy, directly with the insurance company. Maximum Security For The Client The Cascade PortfolioTM only includes life insurance policies from the financially strongest companies, rated "A" or better in accordance with the A.M.Best independent financial strength ratings criteria. This ensures that they have more than sufficient assets to pay the client upon policy maturity. Certainty of Payment An essential element of the Cascade PortfolioTM is that every life insurance policy approved is underwritten by a U.S insurance company. This is important, as in the U.S (unlike the U.K) a life insurance policy becomes non-contestable once 25 months consecutive premiums have been paid. Therefore as long as the policy is properly maintained (premiums paid), payout of the policy is guaranteed and cannot be contested by the insurance company. Superior Returns The average annualised rate of return expected is between 10% and 12%. Due to the unique nature of this asset class, considerably higher returns are possible, as the gain is predetermined. For instance, should the policyholder not reach their projected life expectancy, the entire fixed return would still be paid to the client. Thus delivering a much higher annualised rate of return. Minimal Charges, Maximum Value There are no set-up fees, all of the clients funds are applied to the portfolio, and the annual management charge for the administration the Cascade PortfolioTM is no more than 0.5% P.A. This is deducted from the Cascade PortfolioTM's performance, rather than taken from the client. Pensions Many leading pension companies have approved the Cascade PortfolioTM for inclusion within their S.I.P.P. This usually enables the client to use these funds, that are perhaps under performing, to acquire a Cascade PortfolioTM. Here are some of the current S.I.P.P providers:
We are in discussions with many other SIPP providers seeking their approval. If the client's pension is not a S.I.P.P, but is a personal pension / existing or previous employer pension scheme it is usually possible to transfer to a S.I.P.P to facilitate a Cascade PortfolioTM purchase. Tax Treatment The profit derived from the Cascade PortfolioTM is treated as a Capital Gain, rather than income. In the instance that the Cascade PortfolioTM is purchased via the client's S.I.P.P, neither C.G.T nor income-tax would be payable. The Cascade Principle The long-term growth of the portfolio is built through successive policy maturities and repurchases. As each policy matures, the funds are used to acquire shares in additional policies, thereby increasing diversification within the portfolio. In each instance the client can opt to re-purchase using all or part of the proceeds of a maturity. As each re-investment occurs, the portfolio's capital value increases and client receives a greater number of policies within it. This is the "cascade" effect Affordable and Accessible The life settlement products are usually only enjoyed by institutions and very high net worth individuals, due to the substantial minimum outlay requirements and set-up costs incurred. The Cascade PortfolioTM is a highly accessible product, with a minimum outlay of only $25,000.00 (£15,539 as at 04/01/10) and this can be shared by several clients. This sum can often be found within existing personal pension plans or S.I.P.Ps. The Commission Structure It is important to note that commissions are paid at two key stages. Firstly, upon the initial Cascade PortfolioTM purchase a commission of 6% is paid to the agent of the allocated sum. Secondly, upon maturity of any policy within the portfolio, should the client opt to re-purchase, commission is paid again at the same rate (6%). It is important to note that in instances where the portfolio is purchased by a client's SIPP, re-purchased (and therefore re-commission) tends to be the norm. This commission structure is a superb method of building an income stream for any practice, and is paid within one month of purchase / re-purchase. In Summary As you can imagine a non-correlated product that delivers high returns, has superb security for the allocated funds, can only increase in value, has a pre-determined outcome, and has superb earning potential for all parties, is being extremely well received by all. |
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