OUR SERVICES

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 Optima as an Originator would benefit our clients in the following areas:

• 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.
• 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.

Servicer

e 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:

• We determine and coordinate the optimal premium payments that need to be made to the insurance carrier.
• We analyze the portfolio periodically to determine if the premium reserve holds sufficient funds to pay the upcoming premiums or whether or not the fund will require premium contributions.
• We engage tracking agents in order to monitor the health status of the insured.
• Upon maturity, we can 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 help coordinate the sale of any outstanding policies.

OUR CORE COMPETENCIES

Efficient Policy Acquisitions

Acquiring life settlement policies requires industry expertise, such as proper channels of policy sources, knowing how to properly do due diligence, and knowing how to properly analyze each and every policy. Optima Life Settlements diligently acquires polices through an extensive network of policy sources that we have established over our many years in the industry. We put each policy through a rigorous evaluation process which results in a filtration whereby only polices that fit our clients specifications are considered for purchase.

Policy Due Diligence

The most important component to any investment is the underlying asset. This is no different with life settlements. Each policy that we acquire goes through an extensive due diligence process, whereby we prioritize the protection of the underlying asset. Our industry experience enables us to achieve the overriding goal of sufficiently going through this due diligence process in order to ensure clean passage of title to the purchaser and seek to eliminate any party potentially making a claim against the policy after it has been transacted.

Policy Analysis

Too many people in the life settlement industry simply focus on achieving a certain rate of return at the insured’s life expectancy, and that’s it. Optima Life Settlements not only focuses on achieving strong returns, but we also want to try to protect our clients as best we can by utilizing our industry knowledge. We analyze policies using a combination of probabilistic and deterministic models to better understand each policy’s premium sensitivity and the effect premiums can have on the policy’s rate of return beyond the life expectancy period. This is otherwise known as evaluating the policy’s longevity risk.

The goal is to reduce the longevity risk wherever possible. Policies can mature later than expected just as they can mature earlier than expected. We use probabilistic models to analyze the mortality levels of the insured on each policy at various intervals, enabling us to purchase policies with stronger confidence levels in longevity for our clients. Taking these extra steps to analyze each policy helps to provide our clients with not only competitive returns, but helps to reduce longevity risk, which goes beyond a simple industry valuation approach.