What are Sundance Strategies Inc's Business Segments?
Life Settlements Market
There are a number of reasons a policy owner may choose to sell his or her
life insurance policy. The policy owner may no longer need or want his or her
policy, he or she may wish to purchase a different kind of insurance policy,
premium payments may no longer be affordable or the policy owner may need cash
to fund healthcare or other expenses. In particular, policy holders 65 years
of age and older and their families are faced with a variety of challenges as
they seek to address their post-retirement financial needs and selling one’s
life insurance policy may provide a unique and valuable financial solution to
such challenges.
Life Settlement Financing Market
Because of the uncertainty of maturity of life insurance policies, financing
for the purchase and servicing of life insurance policies has historically been
difficult to secure. The lender (the “Holders’ Lender”) has
provided financing to the Holders to finance the purchase of the insurance policies
underlying our NIBs. To be clear, the Holders’ Lender does not provide
any financing to us but, rather, provides financing to the various Holders of
life insurance policies underlying our NIBs. We have no contract, arrangement
or understanding with the Holders’ Lender. The Holders’ Lender contracts
with the Holders for financing to purchase the insurance policies underlying
our NIBs. We believe the Holders’ Lender is presently the only lender
currently providing financing for insurance policy portfolios underlying NIBs.
We believe other lenders may enter this market. No assurance can be given that
the Holders’ Lender will be able to continue to provide financing for
policy portfolios or that any such other lending sources will become available
to participants in the life settlement market. The failure of the Holders’
Lender or other lenders to make loans to Holders may result in Holders’
inability to provide NIBs to us for purchase and our business model of purchasing
and holding NIBs will suffer substantially. We do not have a direct contractual
relationship with the Holders’ Lender.
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