The minimum investment is $20,000. You have many choices for funding a life settlement investment with PWCG. These range from cash to retirement accounts such as IRA (Traditional, SEP, Roth) and 401K, 403B, etc. We use a third party administrator to act as custodian for our IRA accounts. Upon opening an IRA, you would transfer/rollover funds from your existing retirement account into the new IRA. Once funds are received, the investment is then placed with your IRA account, which then owns the investment.
Yes. Without a doubt. In California, life settlements are considered securities and therefore are regulated by the securities division of the CA Department of Corporations, as set forth through legislation in Senate Bill 1837.
No. A viatical settlement applies only to policies of people who have a terminal illness. Such people could be of any age. Life settlement policies are based on the insured's advanced age alone. We focus on life settlements because we don't want to expose our investors to risk due to the subjectivity of health diagnosis. With a viatical settlement, an unexpected cure, a new drug, or a new treatment could result in the insured living for years or even decades beyond the expectation. Since we buy policies from seniors, the time frame is much narrower because there simply is no cure for old age.
As evidence of an investor's holdings, you will receive copies of your signed purchase agreement and policy disclosure form, a deposit receipt from the escrow company, a copy of the recorded changes of ownership and beneficiary rights, and an assignment of death benefit showing your beneficiary designation issued by the Trustee.
Sure. You can place your money in as many policies as you wish depending upon availability. For example, you can invest $100,000 in a single policy or invest a minimum of $20,000 in several policies.
No. This vehicle is a proprietary offering. If you invest into it, you would do so through the offering company (PWCG), whether you use cash or an IRA to fund the vehicle.
You don't receive annual payments, so there is no annual rate of return as such. You do receive a 100% total fixed return or higher. Your hypothetical annual rate of return is determined by the duration between purchase of the investment and when the investment pays off. For example, with a policy paying a 100% total fixed return, if that term is five years, your annual return would be 20%. If it's six years, your return would be 16-17%. We buy policies our experts estimate will mature in four to seven years, but, as you know, these things can not be specifically determined. However, we know the amount you will receive upon the policy's maturity is double your investment or more.
After funds go to the escrow agent, the investment can usually be implemented within a couple of business days. However, there is a five-day waiting period after the policy disclosure form has been received and is being reviewed by you.
If you use annuity money, it would be subject to taxes on the portion rolled out, and any applicable penalties the government would impose if you are younger than 59 1/2 would apply. However, if your annuity is held within your IRA account, penalties would not apply because the investment would be an IRA to IRA transfer.
Per California laws, strict disclosures exist as to the information you must receive before any investment can be made and money distributed from escrow. You receive this information in the policy disclosure form that you sign, which designates the policy that your money is invested in. You also receive the name of the life insurance company, policy number, face value amount of the policy, annual premiums for the policy, type of policy, life insurance company rating, age of the insured, and sex of the insured.
Premiums are paid through the policy premium reserve structure we have established. However, we can supply you with a verification of coverage from the life insurance company.
The investment would transfer to your heirs per your will or living trust. Your heirs would be required to contact the Trustee, Mills, Potoczak & Co., to re-register the asset to the new assignee.
This is exactly why we use licensed, bonded entities to process all the money through the transaction. Mills, Potoczak & Co. has extensive experience and a flawless reputation as an escrow agent and trustee in this industry. In addition, Mills, Potoczak is a founding member of the largest nationwide organization pertaining to life settlements. And remember, the life insurance company, which will be at least an A-rated U.S. company, is going to be paying the beneficiary designation directly.
Investment assets, such as the policies and the premium accounts, are owned by the PWCG Trust. If someone were to sue Pacific West Capital Group, the trustee, or the escrow agent, he/she could not attach the assets of the Trust as they are not owned by any of the three entities.
There are no fees or loads from us. We make a margin above:
1) what we pay for the policy; and 2) costs of funding the premium accounts.
For example, if a $1,000,000 face value policy costs us $300,000 plus premium reserves of $100,000, we can sell shares for $500,000 giving us a $100,000 gross margin. The investors who put up the $500,000 will be paid the full $1,000,000 face value from the life insurance company, giving them a 100% total fixed return. If a policy costs us less money, or if the premiums are not as high, for example, we could sell shares for $400,000, giving the investor a 150% total return, and still preserve our margin percentage.
