Life Insurance Policies

12 Months Ended

Dec. 31, 2021

LIFE PARTNERS POSITION HOLDER TRUST [Member]

Note 4 - Life Insurance Policies

As of December 31, 2021, the Trust owns an interest in 2,493 policies of which 356 are life settlement policies and 2,137 are viaticals. As of December 31, 2020, the Trust owns an interest in 2,739 policies of which 407 are life settlement policies and 2,332 are viaticals (the “PHT Portfolio”). The PHT Portfolio’s aggregate face value is $0.9 billion as of December 31, 2021 of which $0.7 billion is attributable to life settlements and $0.2 billion is attributable to viaticals. The PHT Portfolio’s aggregate face value is $1.0 billion as of December 31, 2020 of which $0.8 billion is attributable to life settlements and $0.2 billion is attributable to viaticals. The PHT Portfolio’s aggregate fair value is $190.3 million as of December 31, 2021 of which $180.6 million is attributable to life settlements and $9.7 million is attributable to viaticals. The PHT Portfolio’s aggregate fair value is $159.2 million as of December 31, 2020 of which $153.7 million is attributable to life settlements and $5.5 million is attributable to viaticals.

Life expectancy reflects the probable number of years remaining in the life of a class of persons determined statistically, affected by such factors as heredity, physical condition, nutrition, and occupation. It is not an estimate or an indication of the actual expected maturity date or indication of the timing of expected cash flows from death benefits. See “Life Insurance policies,” in Note 6, “Fair Value Measurements”. The following table summarizes the Trust’s life insurance policies grouped by remaining life expectancy as of:

As of December 31, 2021:

Remaining Life Expectancy (Years)	Number of Life Insurance Policies		Face Value		Fair Value
0-1		—	$	—	$	—
1-2		1		3,298		2,681
2-3		3		2,052,445		994,282
3-4		86		138,284,017		42,512,877
4-5		190		421,616,744		109,869,222
Thereafter		2,213		334,851,375		36,945,170
Total		2,493	$	896,807,879	$	190,324,232

As of December 31, 2020:

Remaining Life Expectancy (Years)	Number of Life Insurance Policies		Face Value		Fair Value
0-1		—	$	—	$	—
1-2		1		46,395		34,398
2-3		6		7,221,086		2,249,751
3-4		93		154,462,044		37,115,382
4-5		200		426,793,251		84,401,748
Thereafter		2,439		408,906,636		35,378,633
Total		2,739	$	997,429,412	$	159,179,912

Estimated premiums to be paid by the Trust for its portfolio during each of the five succeeding fiscal years and thereafter as of December 31, 2021, are as follows:

2022	$	64,039,227
2023		60,185,453
2024		52,423,714
2025		44,408,673
2026		37,298,929
Thereafter		131,435,391
Total	$	389,791,387

The amount of $389.8 million represents the estimated total future premiums payable by the Trust. The Trust is required to pay its portion to keep the life insurance policies in force during the life expectancies of all the underlying insured lives. The estimated total future premium payments could increase or decrease significantly to the extent that insurance carriers increase the cost of insurance on their issued policies or that actual mortalities of insureds differ from the estimated life expectancies. If the continuing fractional holders default on their future premium obligations, the Trust’s premium liability may increase.

The Plan requires that the continuing fractional holders pay premium calls within 60 days of the day the Trust sends an invoice. The failure of a continuing fractional holder to timely pay a premium call on a position results in a premium default with respect to that position.

The Trust anticipates funding the estimated premium payments from maturities of life insurance policies. It also maintains premium reserves and access to lines of credit.

Life Partners Position Holder Trust 10-K