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15260 Ventura Blvd Suite 1420
Sherman Oaks, CA 91403

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cashing in policy early without penalty

Date: 12/1/2016 8:05 PM (PST)

Does Reliant Life Shares allow investors to cash in their policy early without penalty? I am concerned that my life situation may change or maybe an emergency occurs and I need the funds.

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Date: 12/2/2016 10:11 AM (PST)

Hi Joseph. You ask a very good question and one that many life settlement investors may like to know as well. I have reached out to Reliant Life Shares LLC and invited them to provide a response to your inquiry through this forum. I did find some information on the company's website, on their FAQ's page, regarding withdrawing funds without a penalty.

Under item #1, it states:
"The Subscription Escrow Account - UMB acts as escrow agent and accepts the investor’s funds into this account until the investor selects their desired policy or policies. The flexibility of this account allows investors to withdraw their money any time without a penalty. Investors who place their funds in the Subscription Escrow Account have the advantage of participating in Reliant Life Shares’ most desirable polices before they become available to the general investor pool."
So, if you have invested in their Subscription Escrow Account, it appears you may be allowed to withdraw your funds at any time, without penalty. If you have invested in any of their other accounts, you may need to review your agreement or contact Reliant Life Shares, LLC directly.

Joseph, Thank you for utilizing our ATE Forum. It is one of the many free consumer services we offer. Check our complete list of consumer services here http://www.checkbca.org/consumers.aspx which includes Dispute Resolution, Scam Alerts, and Resource Guides. I would also like to let you know about a new program developed exclusively for consumers called the Consumer Ally program. It was made for a community of consumers who share our mission of protecting people like you from being scammed by promoting first-rate business practices and warning other of scams. It's free to sign up, which you can do here: http://www.checkbca.org/consumer-ally.
Please feel free to contact me at atingler@checkbca.org if you have any questions.

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Date: 12/6/2016 1:32 PM (PST)

Thank you for your inquiry. Fractional Life Settlements are considered a "buy and hold investment" because the investment only pays out when the life insurance policy claim is paid by the insurance carrier. With that in mind the policy positions are indeed transferable to a new investor if you decide to sell them. The issue this poses to investors is that there is no organized secondary market for fractional life insurance positions, therefore, the amount you might receive is an unknown amount unless you hold it to maturity. If held to maturity you will find the amount of face value you receive when the claim is paid will not change from the percentage of the policy you originally acquired.

With respect to the previous answer and the frequently asked questions section of our website, the answer is true however the answer is discussing the subscription escrow account which is the account that an investors funds are received into BEFORE they are invested into individual life insurance policy positions. If you had chosen to request funds back BEFORE they were invested into individual policies you could easily have done that. Once you chose the policies and become the registered owner with the Trustee/Bank you would need to transfer the shares when you find an appropriate buyer. We are happy to process the transfer and provide the appropriate forms to be completed when you are ready.

Thank you
Reliant Life Shares, LLC

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Date: 12/6/2016 1:45 PM (PST)

Hi Andrew, Thank you for your detailed reply. It is very informative and helpful.

Sincerely,
Allison

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