Understanding LifeVault: An Alternative Approach

00;02;00;04 - 00;02;42;22
Mark
All right. Good morning everyone. Welcome, to the SMS Financial Solutions March webinar. We have a very unique program here today. It's something that is so different. None of you will have ever seen it before. Have with me Cormac Trainor and Lee Miles, and they're from the focus group. So just to give you a little bit of background, Lee and Cormac, got with us, at SMS Financial Solutions, a few months ago, and we were talking about a new product offering that they were going to make available.

00;02;42;25 - 00;03;11;14
Mark
And, you know, we we're partnering together. And this is something that you, again, will not see anywhere. It is a very, a very special thing. And, you can really only get it, if you reach out to SMS financial solutions and, and we'll make sure that, yeah, you get on the phone with Cormac and Lee to to talk a bit further about the what, they can offer.

00;03;11;16 - 00;03;21;20
Mark
So with that, you know, Cormac and, I'd like you to talk a little bit about the focus group and then what we're going to see today.

00;03;21;23 - 00;03;51;28
Cormac
Thank you. Mark. So who is the focus? So don't miss Group is a collaboration between myself and the senior principals of Stony Point Capital, which is a very large private equity firm with about 65 billion of assets under management. The focus group operates across niches within the US mortality, longevity and life insurance reinsurance markets, with a focus really on, areas of where there's price, operating or market inefficiencies, where we think we can bring meaningful value to the table.

00;03;52;00 - 00;04;18;17
Cormac
And Life Vault is the latest, product offering, within our stable, where we believe there is a market inefficiency and there is a significant consumer call to action. Life Vault effectively is a reverse mortgage of a life insurance policy. In other words, making life insurance work harder for the consumer while they're alive. And with that, I'll hand over to Lee.

00;04;18;20 - 00;04;20;20
Lee
Okay. All right. Thank you. Mark.

00;04;20;22 - 00;04;45;28
Mark
And just it just for the for the audience. I mean, what you're really seeing is a planning tool that is available if clients of yours do not have the ability to pay the premiums on their life insurance, do not want to pay the premiums on their life insurance, are looking for an an income stream from their life insurance.

00;04;46;04 - 00;04;57;23
Mark
It's got a lot of different ways that you can use it. So it is I encourage you everybody to to pay close attention. And, Lee, take it away.

00;04;57;26 - 00;05;38;24
Lee
Okay. Thank you so much. Marking format. And, we're excited to introduce, life to all of you. And as, Cormac already mentioned, the easiest way to think about life vault is, is like a reverse mortgage or life insurance. And, I'm sure most of you already know, but just to make sure we're on the same page about what a reverse mortgage is, so effectively it's a loan that's collateralized by a house that allows senior homeowners to convert some of their home equity into cash or monthly income while they're still able to live in the house and without them having to sell a house or make monthly payments.

00;05;38;27 - 00;06;17;09
Lee
And typically the loan is repaid, when the homeowner dies and life goal is very similar to that, except that you replace the home with the life insurance policy. So simplistically, what life insurance policy by making a loan to the client, and that provides clients with continued life insurance coverage, relief from all the future, premium payments for the remaining life of the insured, not just a limited period of time before the full life, no personal recourse.

00;06;17;11 - 00;06;23;15
Lee
So the recourses to the policy only and there's no required credit check.

00;06;23;17 - 00;07;02;10
Lee
And for policies with enough embedded value, there's a possibility to receive additional monthly income with flexible terms. There's no refinancing requirement, and there's also a guaranteed final expense type benefit that could cover cover of funeral expenses. For example, and then for policies with, significant meaning, probably about $20,000 or more. CCV we can offer an enhanced, rate of return that is, that can be up to 2 to 3 percentage points above with the carrier's crediting rate.

00;07;02;13 - 00;07;11;14
Lee
And we are very pleased to be working with, Mark Lyons and Senior Market Sales as our distribution partner for life. All.

00;07;11;16 - 00;07;31;26
Mark
Well, we appreciate it, too. And just so the audience is is clear on this, it really has nothing to do with a mortgage on your home. It's just the idea that it behaves like a reverse mortgage for life insurance.

00;07;31;28 - 00;07;37;06
Cormac
That's 100%. That's that's right.

00;07;37;08 - 00;08;03;20
Lee
Okay. And so why are we launching life now? So we're very excited that we think that there are, many industry and demographic tailwinds that should support demand for life fall. And we think there's a great time to be launching it. For example, there are increasing number of policies lapsing or being sold into the life settlement market with few policyholder friendly alternatives.

00;08;03;23 - 00;08;11;15
Lee
And we think life is a great alternative, particularly for policies that may be lapsing.

00;08;11;17 - 00;08;37;14
Lee
So a lot of retirees are facing affordability issues and financial strain, both from a lack of, savings in general for the baby boomers, as well as from inflation in health care and other, expenses. And we think that the growth in the reverse mortgage penetration is a good harbinger for life vault. It shows that there's demand to get, liquidity out of otherwise illiquid assets.

00;08;37;17 - 00;08;46;05
Lee
And as we all know, the aging boomers, which was the largest generation, they're getting older and they're having different needs.

00;08;46;08 - 00;09;10;16
Lee
And we think that the life settlement market has become less attractive to policyholders, both in part due to increasing interest rates and a more realistic view of the improvement in longevity. So we think future deals are likely to be less attractive than deals. Over the past several years. And all of this makes us very excited, to launch Life Vault now.

00;09;10;19 - 00;09;34;19
Lee
Now, because of it's a new product, we want to make sure that there isn't any confusion and specifically, we're going to compare Life Vault to a traditional premium finance as well as to a life settlement transaction. And we are not either of those. Again, the most similar analogy to what life is. It's a reverse mortgage, but we're not a traditional premium finance and we're not a life settlement transaction.

00;09;34;24 - 00;09;44;01
Lee
In fact, we often think of ourselves as a anti-life settlement transaction. And we'll go through, some of the differences in the following slides.

00;09;44;03 - 00;10;08;11
Lee
Okay. First, to compare, life to, traditional premium finance. So for life vault, the maximum loan amount is based on the embedded value in the policy, for example, which can be driven by, the health status versus for traditional premium finance, it typically based on the cash value of the policy and potentially collateral.

00;10;08;13 - 00;10;32;20
Lee
So the recourse is only to the policy for life versus due to the policy, the borrower and potentially the borrowers as assets. For traditional premium finance, the term is very different because life vault will extend for the life of the insured. The remaining life of the insured versus traditional premium finance has a more limited term, typically three, five, seven, or ten years.

00;10;32;22 - 00;10;34;04
Cormac
On a repayment requirement.

00;10;34;10 - 00;11;08;23
Lee
And a repayment requirement after that term ends, and the underwriting is also different and simpler for life because it's really just on the insurance life expectancy. With the simplified underwriting process versus for traditional premium finance, there's also the borrower's credit and assets that are reviewed. And we think that life will have very different use cases because we think for traditional premium finance is primarily for high net worth situations, versus we think life Vault is, more applicable to many middle America.

00;11;08;23 - 00;11;13;07
Lee
And we'll go through some of the many, use cases we see for life.

00;11;13;09 - 00;11;29;19
Mark
So, Cormac, I just, you you made the comment about the the repayment. I just want to make sure everybody understands how the you get back the money that you loan to pay the premiums.

00;11;29;22 - 00;11;51;23
Cormac
Sure. So in life vault, like, what is a loan product? We advance the, funds necessary to pay the premiums for the remaining life of the insured. And upon the death of the insured, a life for loan gets paid back with interest at that point, and all residual amounts of death benefit in the policy go to the insurance beneficiaries.

00;11;51;25 - 00;12;15;10
Cormac
So that's very different, to a traditional premium financing program, which is a limited term with a repayment requirement. So typically in a traditional premium finance transaction, let's say it's a seven year transaction. The the borrower, the insured, the policy owner has a requirement to repay the loan to the premium finance lender at that point in time.

00;12;15;12 - 00;12;45;20
Cormac
What the borrower is relying on in a traditional premium finance program is that the the cash value in the policy will perform to such and such an amount that it will repay the loan at the end of the loan term and deliver an excess return. So you can see that it's a very different motivation, a very different kind of risk assessment than effectively what we call a reverse mortgage, our life force, which is just repayable upon death.

00;12;45;22 - 00;13;07;20
Mark
Yeah. So you pay the premiums and I, I really won't know anything back, but I get to keep that death benefit that that doesn't go to due to the life company 100%. Okay. Well that's great. All right. Please continually.

00;13;07;22 - 00;13;34;28
Lee
Okay. Thank you. And, so now we're going to compare life to a life settlement transaction. And they are extremely different. In fact, life is like an anti anti-life settlement transaction. So looking at some of the differences. So the age range we're targeting, people at 60 years or older versus life settlements. Often if you're in good health you usually don't qualify unless you're 75 or older.

00;13;35;05 - 00;13;55;04
Lee
So we're targeting a younger and healthier age group than life settlements. The current health rating, we're generally targeting standard or modestly below versus particularly for the younger people in life settlement, you generally have to have significant health impairment.

00;13;55;06 - 00;14;08;23
Lee
And one of the key differences for life, all the life insurance coverage continues after you engage life versus for a life settlement transaction. The coverage ends at the transaction.

00;14;08;26 - 00;14;36;08
Lee
And the policyholder will continue to own the policy for life. Goal versus a life settlement. Investor owns the policy after a life settlement transaction. And the liquidity is quite different as well. For life settlement transaction, there's a single time upfront liquidity at the closing of the transaction versus for life full. It's ongoing for life, both in the relief of the premium payments and the potential for supplemental monthly income.

00;14;36;10 - 00;14;37;24
Lee
And we take life home.

00;14;37;27 - 00;14;52;29
Mark
And that's what that's what allows me to have a death benefit remaining for my heirs. If if I die earlier than in the in the transaction then rather than later.

00;14;53;02 - 00;15;27;18
Cormac
Correct. So in a life settlement transaction, clearly once that transaction is executed, there is a, a lack of alignment or a different perspective between the, the policy seller and the investor. So the investor, wants an early demise. Whereas the, the policy seller wants to make sure they live obviously for a very, very long time to make sure the transaction makes sense in a life full transaction where you, the policyholder, retain the death benefit subject to the loan amount that grows over time.

00;15;27;20 - 00;15;41;16
Cormac
There's alignment between life wealth as the lender and you as the insured. Because we both want, the life of the policyholder to to live for a very long time.

00;15;41;18 - 00;15;47;09
Mark
I like that. I like that a lot.

00;15;47;11 - 00;16;10;05
Lee
All right. Great. In addition to the alignment that, Cormac just mentioned, also, it's important to note that Life vault allows the client to retain the option of doing a future life settlement transaction after engaging life, all particularly in cases where maybe there's a more significant health and payment down the road.

00;16;10;07 - 00;16;17;04
Lee
Okay, so let's talk a little bit about, the eligibility criteria for life for.

00;16;17;07 - 00;16;40;02
Lee
So, all forms of you, all policies are, allowed in life. So ul, IU, alg, rel, etc.. We're looking for people 60 years or older. Death benefit amounts we will consider are 250,000 to up to 5 million.

00;16;40;05 - 00;16;52;20
Lee
The health class at issue should be preferred. Nonsmoking or better. And the current health status should have some modest iteration. Since issue.

00;16;52;22 - 00;16;59;14
Lee
We are looking for policies that have, been issued at least five years ago.

00;16;59;16 - 00;17;08;26
Lee
And, policies with significant csvs are especially attractive, but not at all required.

00;17;08;28 - 00;17;33;06
Lee
And importantly, we think policies entering or likely to enter the lapsed pending status could be a very good fit for life value proposition because we think that that provides significant upside from the client's perspective. And, two ways, as agents are thinking about which of their, clients may be good prospects for life, FL please consider these eligibility criteria.

00;17;33;06 - 00;17;42;18
Lee
But also think about who's lapsing or complaining about paying, premiums and which policies, have significant significant CCV.

00;17;42;20 - 00;18;10;17
Mark
And and and just for, you know, you know, we probably have a lot of different folks, that do a lot of different jobs, with regard to financial planning for, for consumers on the call. So, if if you're not a, a life insurance pro, just remember that, CSV is cash surrender value. So the cash value in the policy that you can get out.

00;18;10;19 - 00;18;17;16
Lee
Right. Okay. Thank you, Mark, for, clarifying that.

00;18;17;18 - 00;18;38;07
Lee
Okay. And one of the things that were especially excited about is that we we have identified many, many use cases, and we've actually documented about ten of them, but we won't go through all of them now. We'll go through two of them now. And then later in our 101 sessions, we can discuss some of the additional, use cases.

00;18;38;13 - 00;18;59;08
Lee
And we think that there are many different cases in which life can add significant value to the client's, situation. And, we think as we're discussing the use cases, we hope that some of them resonate with you and remind you of some of your own clients, which may be an indication that those clients are good prospects for life.

00;18;59;10 - 00;19;20;18
Lee
Okay. So the first of the two that we're going to go through today is, Jim. And he is having an issue with the affordability of the premium payment, but still wants to retain life insurance coverage. So Jim's recently retired small pension and $1 million all policy.

00;19;20;21 - 00;19;42;24
Lee
The premium have have increased as he has, gotten older and now they're just too expensive. It's creating issues with this budget. He considered lapsing the policy, but he really wants to maintain insurance to benefit his wife, Mary. And Mary's also retired, and she has no independent source of income.

00;19;42;26 - 00;20;07;25
Lee
And the policy is a fairly significant portion of the estate for Mary. Should Jim, die before she does so, the solution is they could engage life all and life will pay all the future premiums for the remainder of Jim's life, which will free up all that, cash for them to use it during retirement. And it provides Mary with continued insurance and peace of mind.

00;20;07;28 - 00;20;44;15
Mark
You know, and I think that's a great example of just because, I mean, we hear all the time that people, when they get to a certain age and maybe have a fixed income, they, they don't like paying their, their life insurance premiums anymore. And it's, you know, that's maybe when they consider, you know, doing a life settlement, but, you know, they're not fitting into the parameters for a life settlement, or they don't like the idea of someone else owning a policy on their life, or the death benefit goes away for, for their, perhaps their spouse.

00;20;44;17 - 00;20;54;14
Mark
And so, you can see that this this is a great solution, for those situations. I mean, it's it's just tremendous.

00;20;54;17 - 00;21;19;11
Cormac
Great. And, you know, for some folks have done it, but for the reasons you've just articulated, they don't like any of those options. They might engage in a partial surrender directly with the life insurance company, to the extent the issuing insurer is willing to provide it. But that, again, is a substandard kind of solution. And we think Life Health offers a much better solution for folks finding themselves in that affordability trap.

00;21;19;13 - 00;21;22;16
Mark
Well, that's that's good.

00;21;22;19 - 00;21;48;01
Lee
Okay. And our, second use case that we're going over and again, there are many more that we can discuss in the 101 sessions that, Mark will mention later. But their situation is primarily different because they don't actually have an affordability issue because they have a lot more resources than our previous example, but they find the payments to be an irritant.

00;21;48;04 - 00;22;10;17
Lee
And you can think of it as, you know, they think of the premiums as a waste of money, and it just reminds them every time they add quarterly or monthly that reminds them of how much they've already put into the policy and how little they've gotten out of it. So far. So this example is Carolyn Gray. And they're financially comfortable and they have significant retirement income and assets.

00;22;10;19 - 00;22;15;04
Lee
So there's really not an affordability issue for them.

00;22;15;07 - 00;22;24;26
Lee
Okay. And they no longer have as much need for life insurance, partly because they have so many assets in retirement.

00;22;24;28 - 00;22;52;06
Lee
However, even though they can afford it, the writing the premium checks has become an irritant and a quarterly reminder of their own mortality. And there's a lower perceived benefit of the coverage, since, again, they no longer really need it. However, they'd be, more likely to keep the insurance coverage if there's no future out of pocket expenses for them, and they go out to write those quarterly checks.

00;22;52;09 - 00;23;14;07
Lee
So the solution here is they can engage like fall and, life all would pay the future premiums for the remainder of Greg's life. And they can also, if they have significant, cash settlement value or account value, they can earn an enhanced, 7%. In this example, return on, that Csea,

00;23;14;09 - 00;23;34;02
Cormac
So just on that, you know, that that second example that is, drawn up, there is actually a real life example of someone that life old has, has engaged in, have engaged with and has decided to contribute their policy to the life of a program. It's it's, it's simply that it's an option value for them.

00;23;34;02 - 00;23;52;08
Cormac
So they're no longer willing to keep paying premiums. It's not a affordability issue. They just don't necessarily see the value of coverage or the option value of coverage. But to the extent that life fall can fund the premiums for them for the rest of their lives, it's now a zero cost option. And that suddenly becomes a lot more interesting to them.

00;23;52;10 - 00;23;55;04
Cormac
So that is a real life example for life. Old.

00;23;55;06 - 00;24;19;18
Mark
Yeah, I mean that I mean, it's funny that you use the word irritant. When when you talk about paying life insurance premiums because I don't think there's a single person, probably that's purchase life insurance that didn't feel like the premium payments, were an irritant of some form or fashion. But, you know, some people really need the coverage and some people don't need the coverage.

00;24;19;26 - 00;24;30;03
Mark
The coverage is much. And so, you know, they probably all find it to be an irritant. But, it's a good solution for, for that irritant.

00;24;30;05 - 00;24;32;17
Lee
Right.

00;24;32;19 - 00;24;54;04
Lee
Okay. Great. So let's talk about, some of the, loan terms for life. And one key thing that will be a particular interest, for all of you agents, is there is an upfront origination fee that is 1% of the death benefit that's paid by life fault, to the agent.

00;24;54;06 - 00;25;11;02
Lee
Right. Some of the other terms, the loan coupon interest rate is a 12%, fixed rate. And the life old program is targeting a return for itself of about 10 to 12%.

00;25;11;04 - 00;25;36;29
Lee
So for the policies that have enough embedded value to receive, supplemental monthly income, we offer flexible, options in terms of the amount versus the timing, for which they'd like to receive that income and flexible start dates for when they receive it, if they don't need it immediately. And again, the recourse is only to the policy.

00;25;37;02 - 00;26;01;23
Lee
And the other key things is, again, the premiums are paid for the life of the insured, the remaining life of the insured. And we have a simplified, underwriting and hopefully an easy process overall, particularly relative to the cumbersome process, of a life settlement transaction. And then, as we mentioned before, there's also a funeral of final expense, that can cover some of those expenses.

00;26;01;26 - 00;26;40;21
Mark
So, so what you're seeing with the with the funeral and final expense is that, you know, even though Life Vault has paid those premiums and is recouping, both the premiums that they've paid, plus the interest, on the money they, they've loan to pay the premiums on the policy, which they get paid back, at the death and the, the death benefit goes, partially to the heirs or partially to the, to the life Vault company.

00;26;40;24 - 00;26;54;13
Mark
Even if the, the the amount of the premium payments and the interest exceeds the death benefit available, the client will still keep $10,000.

00;26;54;15 - 00;26;55;13
Cormac
That's correct.

00;26;55;16 - 00;26;57;23
Mark
So for there for those.

00;26;57;25 - 00;27;20;04
Cormac
For the heirs. Yeah. So to put a human face on that. So if for example, an insured were to enter the life for a program we to the simplified underwriting assess that insurer to have, let's say, a 15 year life expectancy and it turns that they have a 25 year life expectancy. So in that simple example life, it would be funding 25 years of premiums rather than 15.

00;27;20;06 - 00;27;45;04
Cormac
So the value of the life for loan, with accrued interest could be greater than the death benefit. That's life for risk and loss. And notwithstanding the most that life can earn back is, the death benefit minus that guaranteed final expense. Ten grand component to the insured. Well, to the insured estate. I should say.

00;27;45;07 - 00;27;47;29
Mark
So. You always keep something.

00;27;48;01 - 00;27;48;20
Cormac
You always do.

00;27;48;20 - 00;27;52;10
Mark
Something. You live something up. If you live a long time.

00;27;52;13 - 00;27;53;11
Cormac
Correct.

00;27;53;13 - 00;27;56;29
Mark
Okay. That that's good. That's great.

00;27;57;01 - 00;28;26;21
Lee
Okay. And again, as as Cormac just mentioned, life bears the risks, the longevity risk. And here what you're seeing now is an example of a sample client illustration for Life Vault. And in this example, it's a $2 million policy. The, current age of the, of the insured is 75. And in this example, the life expectancy was expected to be kind of somewhere around 10 to 12 years.

00;28;26;23 - 00;29;08;20
Lee
And here you can kind of see how the numbers work, over time, as, life pays the premiums and the interest, compounds over time. And you can see there's a little bit of a hit in the first year, but then the the life, vault balance grows fairly slowly for the initial years. And in this case, if the person, you know, dies within, 10 to 12 years in this example, then they would still receive half or more, the $2 million death benefit after repaying the life vault, long.

00;29;08;22 - 00;29;19;01
Mark
And where does that come from? I mean, the thing that the thing that you just showed the illustration,

00;29;19;03 - 00;29;30;27
Lee
You know. Yeah, this is a, kind of a example of a situation that we've seen that we've kind of put the numbers to just to kind of show the mechanics of how the numbers work.

00;29;31;02 - 00;30;03;25
Cormac
But as your question specifically, Mark, so what would happen is if, an insured engages with life or life or would go through that very simplified underwriting exercise, of the life and also of the policy to assess what the premium payments are required to be, to maintain that policy force, for the life of the insured. And that's what kind of gives the size of the loan balance increasing over time with the accrued interest rate, which gives you those different payoffs at different, attained ages at times of debt.

00;30;03;27 - 00;30;11;07
Cormac
So it's a simple illustration, effectively. Think of it as an illustration by the default for the borrower.

00;30;11;09 - 00;30;16;11
Mark
Okay. And then and everybody gets one of those that engages with life fault.

00;30;16;13 - 00;30;17;07
Cormac
Yes.

00;30;17;09 - 00;30;23;06
Mark
Yeah.

00;30;23;08 - 00;30;45;18
Lee
Okay. So, we hope that all of you are as excited about life as we are. And, here's kind of the call to action. The primary thing is, we would like to have one on one, discussions, with each of you who are interested. And the best way to schedule that is to contact Mark Lyons.

00;30;45;18 - 00;31;13;02
Lee
And the information is shown here. And in those one on one, we'll kind of do a deeper dive into life. We'll share a lot more details and talk about various different, use cases that may resonate with you, will also give you access to the, life Vault website and portal. And we'll talk a little bit more about the, simplified application and binding process, including the, simplified underwriting.

00;31;13;04 - 00;31;21;16
Lee
We can discuss any client situations you may have, and see whether or not they may be a good fit. And you can get any other help that you need regarding life form.

00;31;21;18 - 00;31;51;13
Mark
Okay. So so, let me interrupt for just a second so you could reach out to me and you can see my my email address, and phone number, on the, on the slide. Please feel free to, to reach out, at any time. That is my cell number. So, you know, probably try to keep it during during work hours if, if, if you can.

00;31;51;13 - 00;32;19;21
Mark
But you can shoot me a text as well. If you're already with SMS financial solutions and you have a, a life or annuity marketer, you can contact that person and, then they'll get Ahold of me and then we'll schedule the meetings as well. It would be helpful, when you're doing that, to try to give me a sense of of, when you're available.

00;32;19;23 - 00;32;53;29
Mark
And it makes it a lot easier to to, plan with, with Cormac and leave for the follow up session. All the information that you've seen here today, will be also reviewed, and we'll go into much deeper detail. When we have the one on one training sessions. And like Lee says, you know, you'll have access to the, to the portal so you can and, you know, put your own cases in kind of see what happens, what comes out.

00;32;54;04 - 00;33;20;10
Mark
And then we'll walk you through the the application and binding process as well. And then, you know, Lee went through those two different examples, a little earlier in the presentation. He has eight others. So we can go through those too, just to identify whether or not, you have clients that fit with it within the life vault.

00;33;20;12 - 00;33;24;21
Mark
You know, parameters. Okay. I'm sorry. Lee, take it away.

00;33;24;22 - 00;33;53;12
Lee
Okay. Yeah. And, and we'll be able to send out with those one on one sessions. We can actually send out a packet that actually has a lot of these, and including the ten different use case examples in writing. So you can refer to them, later as you're going through, your client base. And after the one on one sessions, what we're really hoping is that agents will kind of go through their client list and think about who their best prospects are for life.

00;33;53;14 - 00;34;20;25
Lee
And as you're doing that, we hope that you, pay particular attention to any clients that either, are at risk of lapsing or they've expressed unhappiness or difficulty about paying the future premiums. And also any clients that have significant, $20,000 or more in cash settlement value or account value in their policy. Those are, particularly of interest.

00;34;20;27 - 00;34;40;14
Lee
And then you can also in addition to contacting Mark, you can also contact me and my phone number shown there, to answer any questions or to schedule the one on one sessions if you're not able to, to, reach Mark for whatever reason. Okay. And we hope that you're all, as excited about it as we are.

00;34;40;14 - 00;35;05;00
Lee
And we think that there's, hopefully material upside for agents, regarding this. And we think the light bulb could be a good opportunity for you to check in with your clients and to generate, incremental fee income on your in-force blocks of business. And we think that it can preserve policies that might otherwise lapse, which will hopefully be a win win win for you, your client and life goal.

00;35;05;03 - 00;35;27;16
Lee
And then, as we mentioned before, life volt does retains the, life allows the client to retain the option of doing a, future life settlement transaction, which, again, could generate additional fee income for the agent. All right. And, we'll turn it over to Mark to see if you have any questions.

00;35;27;19 - 00;35;43;09
Mark
All right. Well, that was fantastic. Let me just just see if, you know, just, just to clarify, there's nothing out of pocket for the insured.

00;35;43;12 - 00;35;44;17
Cormac
Correct.

00;35;44;20 - 00;36;05;22
Mark
You know, there's there's there's no upfront fees. There's no, there's there's nothing, no, nothing. And, you know, there's and there's no harm in actually going through the process of seeing that if they qualify for life fault, and would be able to, to make use of it either. Right.

00;36;05;24 - 00;36;32;01
Cormac
That's true also. Yeah. So and we encourage that actually for both agents on their clients to engage with Leipold to see whether a, the client qualifies or is eligible for life fault, and b whether life will kind of offer a solution to that client that is attractive to that client. But clearly it's a no obligation, engagement on the part of the client and the, the agent.

00;36;32;04 - 00;37;03;20
Mark
So let's let's go back to the the concept of, you know, it's not premium finance, it's not life settlement. But there probably are situations if the client was thinking about doing a life settlement where it would be worth it to come examine life bowl life first. And, you know, and then they would have the, the ability to make a determination on which way they wanted to go.

00;37;03;22 - 00;37;25;25
Cormac
I think that's probably true for a subset of folks, for which life fall, would be a potential solution. As Lee had mentioned in the presentation there, you know, for those younger lives, maybe, you know, folks 60 to 75, unless they're significantly impaired, lifestyle, is probably not a solution for them, not an option for them, whereas life would probably is.

00;37;25;28 - 00;37;49;10
Cormac
But for those folks maybe who are 75 and above or have significant impairments, then you're correct. Then it's, you know, do I do I do life fault. Is that a better solution for me? Do I want to retain some life insurance coverage? Do I want to be more aligned with, the borrower then potentially selling a policy to an investor who is wishing for my demise?

00;37;49;13 - 00;37;55;25
Cormac
So yes, it's it's it's maybe a suite of solutions for folks at that stage.

00;37;55;28 - 00;38;15;03
Mark
Okay, great. And then, you know, I know we're getting going to get into the to the underwriting process, during the one on ones. But if you could just give us a little bit of a short version on on what it's what it's like.

00;38;15;05 - 00;38;41;14
Cormac
Sure. So, it's a simplified underwriting process. So and it's it can be done online through our portal, which is automatic click through. Or if folks who are not comfortable are familiar with, kind of the digital world, we can do that, over the phone with, with an underwriter. But effectively it's a questionnaire with a signed HIPAA, which allows us to pull scripts in the background, and then we do our simplified underwriting.

00;38;41;14 - 00;39;00;23
Cormac
So it's probably 15 minutes of engagement by the insured with a turnaround from us within, you know, 24 to 48 hours with a a kind of, final eligibility and, proposed kind of suite of options under life old to insure.

00;39;00;23 - 00;39;03;20
Mark
Does it have to do anything else? Do they?

00;39;03;22 - 00;39;04;26
Cormac
They do not.

00;39;04;28 - 00;39;16;13
Mark
Okay. Well, that sounds like a, a small price to pay for for possibly being relieved of your ongoing life insurance premium payments.

00;39;16;16 - 00;39;39;09
Cormac
Right. And we think that part has to be easy, for folks to kind of, engage with something to see whether they want to proceed. So to get them to the point where life will can give them a suite of concrete executable options, we want to make it easy. Now, once that's done, and then we present the suite of options to the, to the insured and or their agent.

00;39;39;11 - 00;39;55;11
Cormac
Then there's probably a little bit back and forth of what they want to do and how they want to do it, and so on and so forth. But to getting to the point where we can give them a very concrete suite of options that should be very limited engagement by the insured and by the agent.

00;39;55;14 - 00;40;09;14
Mark
Okay, great. And then with regard to the to the portal, and if you just give us a little, a little, you know, a couple minutes on what we're going to see in the portal to.

00;40;09;16 - 00;40;43;15
Cormac
So the portal has two components to it. The first component is and it can be by the agent directly or by the, the insurer themselves. But the first module, shall we say, of the portal allows the agent or the insurer to put in high level policy details, an underwriting class of that, that that policy was issued, and then, you know, determine whether their policy is likely eligible for life or, and that's 3 to 5 minutes in terms of engagement.

00;40;43;18 - 00;41;06;13
Cormac
So let's assume for a moment that an agent is the one entering the details and getting they get confirmation that the policy is eligible. The next module is really for the insured, which is what we just discussed, which is the simplified underwriting. So the questionnaire is in there for the insurer to complete and then sign the HIPAA. And that takes about 15 20 minutes.

00;41;06;20 - 00;41;37;01
Cormac
And then that's it. And on the back of that life fault, will do the underwriting and will revert directly to the client or the client and its agent within 48 hours to set out the scope of different options, different solutions underlie fault for the client and the agent to consider. So that's really what the portal is. It's really just a kind of, a filtering mechanism to find out in very short order whether a the policy is eligible and b to complete that simplified underwriting.

00;41;37;04 - 00;41;55;16
Lee
And there's also on the website, there's also, other kind of reference materials where the agent or the policyholder can collect more information about life. Gold. We actually have a lot of frequently asked questions and the answers as well as give examples of some of the use cases.

00;41;55;19 - 00;42;25;21
Mark
So that so the the advisor can determine whether the the policy is eligible, not necessarily the, the client or the client's health is eligible, but whether the policy itself is eligible without any client involvement. Correct. So yeah, that's that's, you know, if it happens to be the case where it wouldn't be, you know, you're not you're not bothering the client.

00;42;25;21 - 00;42;49;21
Mark
So that's a, that's a definite plus. Okay. All right. Well I hope I hear from each and every one of you. Again, you can contact me at, at, my email address, on the screen and you know, please, but, you know, let me know when, when you will, it will be built, you will be available.

00;42;49;21 - 00;43;18;26
Mark
And then I can, schedule the the follow up meeting, with the Cormac and and Lee. And I think you're going to find that this is a really positive option, for clients in certain situations, that we've never seen before, you know, just. I'll just have the Cormac and and Lee just confirm that no one else does this.

00;43;18;28 - 00;43;35;07
Cormac
We have not seen anyone else do this. I will not tell you that we are the only ones in the universe, but we have not seen folks do this, and we think it's way overdue. And it's an inefficiency in the US life insurance, reinsurance markets. And we want to fill that void.

00;43;35;09 - 00;44;03;21
Mark
All right. Great. Well, thank you, gentlemen. I really appreciate it. Look forward to getting together with, you both on our one on one meetings. So, everybody that's listening have a happy belated Saint Patrick's Day. And also make sure that, your your thinking about who your clients might be. That may be good candidates for life.

00;44;03;25 - 00;44;15;24
Mark
And I'm sure you all have, several, and schedule the meetings. Reach out to me, and, we'll get them on the books. All right. Thanks for dialing in.

00;44;15;26 - 00;44;16;06
Cormac
Thank you.

00;44;16;06 - 00;44;17;04
Lee
Mark. Thank you.