Life Settlement Solutions, Inc. Offers Previously Exclusive Policy Servicing Beyond Existing Institutional Client Base

SAN DIEGO--(BUSINESS WIRE)--Life Settlement Solutions, Inc. (“LSS”) is offering its industry-renowned life settlement servicing capabilities to portfolio owners beyond its existing institutional clientele for the first time in the company’s history.

“Many portfolio owners now recognize the need for high quality servicing to avoid inadvertent or unnecessary lapse of policies and ensure that projected rates of return and other goals are achieved”

Having originated and serviced portfolios of several billions of dollars in face value, LSS is one of the most reputable and experienced settlement servicers in the industry and has been often sought after by institutions to service their portfolios. These capabilities are now available to settlement portfolio owners worldwide.

According to Larry Simon, president and CEO, the company has seen an increase in the number of requests for quality portfolio servicing during the past six months. Simon believes the spike results from a handful of factors including the capital crunch and elongation of life expectancy reports, which adversely impacted the tertiary market and caused shorter-term investors to hold onto portfolios longer than they had originally planned. Other factors fueling the demand for LSS portfolio servicing include a lack of uniform origination standards used previously by the portfolio owners, dissatisfaction with previous servicing firms and failed attempts by portfolio owners to service these pools themselves.

“Many portfolio owners now recognize the need for high quality servicing to avoid inadvertent or unnecessary lapse of policies and ensure that projected rates of return and other goals are achieved,” said Simon. “The main objective of servicing is simple: keep assets in force until maturity at the lowest possible cost. However, achieving that goal requires a combination of expertise and proven techniques and processes that can only be obtained from a high quality servicer like Life Settlement Solutions, Inc.”

According to Simon, LSS has been working with an initial group of institutional portfolio owners that have experienced some of these problems and was able to immediately implement a thorough review, analysis and assessment of each asset in the pool; determine its status; and take required actions to prevent impending lapses. In many instances, LSS was also able to immediately reduce premium costs by identifying premium overpayments and revising premium optimization calculations that had been used previously.

“We have coined the phrase ‘Portfolio 9-1-1’ service for these initial reviews since they identified many areas that could be improved through use of our services,” said Simon. “In one recent example, LSS immediately saved a client over $1 million in premium costs through premium optimization. In another case, LSS helped a client identify prevented a significant volume of asset lapses that would have resulted in millions of dollars of lost assets. As a result, this service may have a significant impact on the actual return realized on these portfolios whether the owner holds the assets to maturity or sells the pool in the tertiary market.”

The servicing capabilities of LSS include policy tracking and premium optimization (made much more complicated today with the advent of death benefit protection riders and “no lapse” provisions), making premium payments, arrangement of trustee services, paying agent services, carrier verifications, life tracking , extensive policy and portfolio review/analysis and a multitude of other services.

Simon added that all of these services are backed by a robust technology platform to improve efficiency in a secure environment.

To further explain the importance of proper servicing, LSS is offering a free webinar on Sept. 17 at 1:30 p.m. [Eastern Time] to all qualified institutional and accredited investors, and portfolio owners. To register for the event, contact Angie Robert at 858/576-8067 or info@lifefirms.com

Neither Life Settlement Solutions, Inc. nor its respective affiliates provides legal, accounting or tax advice. Nothing contained herein constitutes a recommendation to buy, sell or hold a life settlement, portfolio of life settlements, or any other asset or security.