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Business Investors

Business Investors

Start up companies may have few or no assets. Many established companies securitize existing loans by collateralizing all available assets (if sufficient to support the loan to value). Without collateral, securing additional capital funding is extremely difficult and in some cases impossible.

A Merlin Capital Group Inc. (“MCG”), life settlement portfolio creates instant collateral (a desirable cash asset) for companies to securitize and obtain funding for start up, expansion, entrepreneurial or growth, at a fraction of the price. In most cases a life settlement portfolio can be bought at 20% of the total maturity value of that same portfolio. MCG creates an asset that is guaranteed to pay a stated amount, at a guaranteed fixed cost.

MCG will create a guaranteed cash asset with a high degree of accuracy in the timing of payment and the flexibility to design the payment based on the financial parameters of the investor or company.

Here are some of the reasons life settlements are so low-risk:

  • Life settlements reach maturity upon the insureds death (mortality).
  • Mortality is guaranteed.
  • A life settlement contract is a life insurance contract purchased in the secondary or tertiary marketplace beyond contestability period.
  • All life settlement contracts are issued by Legal Reserve Life Insurance Companies.
  • Insurance companies are required by law to maintain sufficient reserves in the state(s) in which they do business
  • Reserves are based on actuarial formulas and are designed to allow a company to meet all of its financial obligations.
  • Policies are usually issued by A.M. Best “A” or higher rated companies.
  • Life insurance companies are America’s oldest and most financially sound companies (i.e. MetLife, New York Life, Prudential).
  • A Legal Reserve Life Insurance Company has never failed to pay a death benefit.


It is no wonder that in today’s financial marketplace, life settlements:

  • Have become Increasingly popular among hedge funds and venture capital firms.
  • Are being used by venture capital firms successfully to mitigate risk associated with raising capital for seed stage, development stage ventures and other high risk investments.
  • Are helping investors in venture capital funds such as oil exploration, motion picture films and other early-stage, higher risk investments to completely collateralized their investment principal.

To answer questions about life settlements and how a life settlement can be a valuable option for business investors, please call us today 760-560-8290.