American Benefits Group Inc. announces OTC listing, private placement, new financial officer.BOCA RATON, Fla.--(BUSINESS WIRE)--Feb. 6, 1997--American Benefits Group Inc. (OTC/BB:LFLN) Thursday announced the listing of its shares on the OTC Bulletin Board under the symbol LFLN, effective Feb. 3, completion of a private placement of shares raising $248,000 and the appointment of a new controller, Lee V. Twyford Jr., joining the company from Blockbuster Entertainment Corp. The company also announced a change of corporate name to American Benefits Group Inc. from Lifeline Benefits Group Inc. It serves a specialty niche in the financial services industry, raising funds for the purchase of viatical settlements Viatical Settlement An arrangement in which someone with a terminal disease sells his or her life insurance policy at a discount from its face value for ready cash. The buyer cashes in the full amount of the policy when the original owner dies.Notes: This is extremely risky. The rate of return is unknown because it's impossible to know when someone will die.If you invest in a viatical settlement, you are basically speculating on death. which convert life insurance policies into cash based on limited life expectancy. American Benefits Group President Donald Goldstein said the private placement funds will be utilized to expand operations and implement an aggressive marketing plan. "Viatical settlements have evolved into a growth industry over the past decade, estimated to be a $900 million per year marketing business today. We are introducing a new resinsurance program into the business," President Goldstein pointed out. The company is another Boca Raton business benefiting from Blockbuster Entertainment's move to Texas, obtaining a new controller in Lee Twyford who refused the offer to relocate, joining American Benefits Group. He was a senior accounting officer for Blockbuster which merged with Viacom. American Benefits Group recently innovated a reinsurance strategy in its viatical financial services operations. A viatical settlement converts the life insurance policy of persons with a life expectancy by selling or assigning the policy at a discount. Upon the death of the policyholder, the life insurance company pays out the full value to the new irrevocable beneficiary Irrevocable Beneficiary A beneficiary in a life insurance policy or segregated fund contract whose compensation cannot be changed without his or her consent.Notes: For example, if a parent wanted to leave money to a child, the parent could designate that child as an irrevocable beneficiary, thus ensuring the child will receive the compensation of the life insurance policy or the segregated fund contract.. In viatical settlements the return ranges from 24% to 42% upon maturity. The company's new reinsurance program, a first in the industry, guarantees the repurchase of the policy in the event the viator Viator A person with terminal or a life-threatening illness who sells their life insurance policy at a steep discount to an insurance firm to pay for their health-care costs or improve their quality of life.Notes: A viator will usually receive a percentage of the policy's face value, around 50-70%, in a cash payment. This is one way in which an individual is able to receive money to help with medical coverage.'s life span exceeds the projected maturity. Although AIDS accounts for a majority of viatical transactions, cancer, heart disease and other terminal illnesses have even greater implications for this expanding financial services industry. Viatical settlements help relieve the burden of enduring a fatal illness, a method of enduring death with dignity. Internet information contact: Carrington Capital Corp. at http://www.stockpr.com with E-Mail at: info@stockpr.com -0- NOTE TO EDITORS: In the Internet/email address noted in this news release, there is an "at" symbol info and stockpr.com. In the World Wide Web address noted in this news release, there is a double slash between http: and www.stockpr.com. These symbols may not appear properly in some systems. CONTACT: Carrington Capital Corp. Richard Kagel, VP, 561/998-2025 |
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