Associated Press Newswire

AS life settlements

01/30/2002
Associated Press Newswires.
Copyright 2002. The Associated Press. All Rights Reserved.

Life Settlement Institute: Association Formed to Facilitate Capital Markets Access to Life Settlement Industry

ATTENTION: Business, Consumer, Personal Finance editors

WASHINGTON, Jan. 30 (AScribe Newswire) --
Six institutionally funded, privately owned life settlement companies announce the formation of the Life Settlement Institute, a not-for-profit association.

The Life Settlement Institute will work with government regulatory agencies, legislators and the life insurance industry to promote the creation and compliance of strict regulations and comprehensive standards and practices for life settlements. In so doing, the Institute and its founding members expect to increase awareness and acceptance of this new financial option.

A life settlement is the sale of an in-force life insurance policy for the calculated present value of its future net death benefit. The policy seller receives a lump sum cash payment in exchange for transferring all ownership and beneficial interest in the policy to the purchaser. The policy insured(s) are generally age 65 or greater. The transaction transfers expensive premium payments from the seller to the buyer and provides current cash to the seller for more suitable financial planning options. It has been estimated that there is approximately $400 billion of in-force life insurance presently owned by or insuring the lives of individuals age 65 or older.

The life settlements acquired by all members of the Life Settlement Institute are exclusively financed through institutional sources including banks, insurance companies and investment banking firms.

Founding members of the Life Settlement Institute include: -- Coventry First, LLC; Fort Washington, PA -- Life Capital, BV; San Diego, CA -- Life Equity LLC; Hudson, OH -- Life Settlement Corporation d/b/a Peachtree Life Settlements; Boca Raton, FL -- Living Benefits Financial Services, LLC; Minnetonka, MN -- Stone Street Financial, Inc.; Bethesda, MD

The Institute will also work toward the development of the further use of capital markets and particularly in the formulation of state laws and regulations facilitating the use of such financing structures.

Each member of the Life Settlement Institute must have an initial financing commitment of at least $50 million from an acceptable institution.

Life Settlement Institute will seek to expand its membership to include companies providing institutional services such as legal services and funding or servicing organizations.

For more information on the Life Settlement Institute contact Deborah Halpern, 312-946-1900. -30- Media Contact: Deborah Halpern, Lipman Hearne, Inc., 312-946-1900 x270 AScribe - The Public Interest Newswire / 510-653-9400 www.ascribe.org $$

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