Disclosures

TRG Companies, LLC’s and TRG Insurance, LLC’s Life Settlement Disclosures

1. There are possible alternatives to life settlement contracts, including any accelerated death benefits or policy loans that may be available to you within your life insurance policy. An accelerated death benefit provides immediate cash, typically by paying some of the policy’s death benefit before the insured’s death, for those insureds that are within 1-2 years of death. It may be a way for you to get cash from a policy without selling it to a third party. Also, if you have cash value in your policy, you may be able to use some of it by requesting a loan to meet your immediate needs and still keep your policy in force for your beneficiaries. You also may be able to use cash value as security for a loan from a financial institution.

2. This policy will remain in force on the insured’s life after the sale. Because the policy will remain in force, if you wish to purchase additional life insurance coverage, then the amount of insurance for which you qualify may be reduced.

3. Any monies that you receive in the sale of your policy, in excess of the premiums paid on the policy, may be taxable currently. If you retained the policy, the proceeds upon death would typically be paid to the beneficiaries free of income tax. Please consult with your tax advisor to determine what the taxable event will be, if any.

4. We recommend you consult with an independent attorney and/or accountant to understand the legal and tax ramifications of this transaction. Although TRG Companies, LLC and TRG Insurance, LLC (collectively “TRG”) employs Bradley K. Feldman, an attorney licensed to practice law in the state of Michigan, Mr. Feldman is not currently practicing law and does not provide legal advice.

5. Proceeds of the life settlement could be subject to the claims of creditors.

6. While you may know the identity of the immediate purchaser(s) of your life insurance policy, there is no assurance that the purchaser(s) will not later transfer the policy to other unknown persons.

7. All medical, financial or personal information solicited or obtained by TRG about an insured, including the insured’s identity, or the identity of family members, a spouse or a significant other may be disclosed as necessary to effect the life settlement contract between you and the purchaser. The information may be provided to someone who buys the policy or provides funds for the purchase. You may be asked to renew your permission to share this information. As such, the insured may be contacted in the future by either the purchaser or its authorized representative for the purpose of determining the insured’s health status. This contact is generally limited to once every three months following the date the life settlement proceeds are released to you if the insured has a life expectancy of more than one year, and generally no more than once per month following such date if the insured has a life expectancy of one year or less.

8. The insured will need to fully disclose all of his/her medical information, including physicians, hospitals, medication and any and all other medical facilities as part of the life settlement application process. A failure of the insured to fully disclose this information may have an impact on the life settlement offer.

9. Various states require that a Life Settlement agent maintain a license to help you sell your policy(ies). It is recommended that you consult with your attorney and/or other professional advisor regarding whether there are any licensing requirements in your state. Notwithstanding the applicability of any licensing requirements, TRG Insurance, LLC and Eric S. Rosenfeld are licensed to sell life insurance, securities, and other insurance products in numerous states.

10. Receipt of the proceeds of a life settlement may adversely affect your eligibility for Medicaid or other government benefits or entitlements, and advice should be obtained from the appropriate government agencies.

11. Entering into a life settlement contract may cause other rights or benefits, including conversion rights and waiver of premium benefits that may exist under the policy, to be forfeited by the seller.

12. TRG and/or its referral sources may receive a commission on the sale of your life insurance policy(ies). Various states require disclosure of this compensation at the time of the sale. It is recommended that you consult with your attorney and/or other professional advisor regarding whether there are any disclosure requirements in your state.

13. It will be necessary at the time of closing for any and all beneficiaries to relinquish all rights and interest that they may have in the life insurance policy.

14. An independent, third party escrow agent will be used on most transactions to facilitate the life settlement closing.

15. The life settlement proceeds will be sent to you after the expiration of the rescission period applicable in your state or within three (3) business days after the provider has received the insurer or group administrator's acknowledgment that the ownership of the policy or interest in the certificate has been transferred and the beneficiary has been designated, whichever occurs later. It is recommended that you consult with your attorney and/or other professional advisor regarding the applicable rescission period in your state.

16. Rescission, if exercised by you, is effective only if both notice of the rescission is given and repayment of all proceeds and any premiums, loans, and loan interest to the provider is made within the rescission period. If the insured dies during the rescission period, the life settlement contract is deemed to have been rescinded, subject to repayment being made the life settlement provider within the rescission period of all life settlement proceeds and any premiums, loans, and loan interest.