Pacific West Capital Group concerns itself with making certain that every detail of each investor transaction in its proprietary life settlement investments is anticipated. Some life settlement investments make payment of the premiums on the life insurance policy the responsibility of each investor. If an investor defaults on a premium payment, the burden falls upon the other investors in the policy to make up for it in order to keep the policy from lapsing.
Every policy acquired for a Pacific West Capital Reviews life settlement investment has a premium reserve account. The account is established with sufficient funds to pay the policy’s premiums for six to nine years. The exact amount held in escrow is disclosed to the policy investors as part of the company’s normal disclosure process at the beginning of the transaction.
Premiums are paid from the reserve account established for each policy. Some policies have sufficient cash value from which premiums can be paid while other policies have disability waiver riders that pay premiums if the insured is disabled. If the premium reserve for a policy is exhausted before the policy matures, Pacific West Capital protects investors with two general reserve accounts.
One general reserve account is funded by 1 percent of the investor money paid for all policies, and the other general reserve account is funded with excess premiums remaining in primary reserves after the policy payout is completed at maturity. This second reserve account is also funded with interest earned on the money on deposit in all premium reserve accounts.
Maintaining primary premium reserve accounts and general reserve accounts protects investors from the risk of a lapse in a policy because of nonpayment of the premiums. It also prevents investors from incurring unanticipated expenses from other investors who fail to meet their premium-payment obligations as can occur in life settlement investments with companies that do not go to the lengths that Pacific West Capital goes to in order to protect its investors. As an added protection for its investors, the primary premium reserve account and the two general reserve accounts are handled by a bonded trustee.
The length to which Pacific West Capital Reviews goes to protect its investors from lapsed policies is in keeping with the attention to detail that starts with the methods the company uses to select policies to purchase. The combined face value of the policies the company reviews each month exceeds $250 million. From that vast number of policies, the company eliminates those issued by insurance carriers that do not have at least an “A” rating from Standard & Poor’s.
Of the remaining policies, only those with an insured who is 75 years of age or older are considered for purchase. The final selection process reviews the health conditions and lifestyle of each insured in search for an insured of advanced years with chronic or degenerative medical conditions. The effort Pacific West Capital Group puts into the selection of each policy is to fully its objective of offering its investors life settlement investments that offer the best return potential.