American Benefits Group Inc. first fiscal six-month report.BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla.--(BUSINESS WIRE)--March 4, 1997--American Benefits Group Inc. (OTC/BB:LFLN LFLN Leadership for Life Network (reciprocal link network) ), Tuesday reported viatical vi·at·i·cal adj. 1. or vi·at·ic Of or relating to traveling, a road, or a way. 2. Of or relating to a contractual arrangement in which a business buys life insurance policies from terminally ill patients for a percentage sales of $1,575,897 for its first fiscal six-months, the period ended Dec. 31, 1996, resulting in a pre-tax profits of $40,757 and after-tax profits of $32,971 which reflect heavy one-time start-up costs including a private placement of shares and moving expenses. No comparative results are available since the company was not founded until the first quarter of 1996. American Benefits Group Inc. serves a specialty niche in the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industry, raising funds for the purchase of viatical settlements viatical settlement Arrangement by which a terminally ill patient's life-insurance policy is sold to provide funds while the insured (viator) is living. The buyer (funder), usually an investment company, pays the patient a lump sum of 50–80% of the policy's face which convert life insurance policies into cash based on projected maturities. The company recently changed its name from Lifeline life·line n. 1. a. An anchored line thrown as a support to someone falling or drowning. b. A line shot to a ship in distress. c. A line used to raise and lower deep-sea divers. 2. Benefits Group Inc. "The introduction of our new re-insurance strategy in our viatical financial operations is having a significant effect on sales. Our aggressive marketing plan is resulting in a major improvement with fiscal third quarter 1997 sales expected to meet or exceed our prior six month revenues," commented American Benefits Group president Donald Goldstein. "Our start-up costs will also have been greatly reduced by the end of that period, increasing profitability," he pointed out. Viatical statements have evolved into a growth industry over the past decade, estimated to be a $900 million per year marketing business today. A viatical settlement converts the life insurance policy of terminally ill Terminally Ill When a person is not expected to live more than 12 months. Notes: Any gifts given out by the afflicted person at this time may be considered as a dispersion of the estate rather than a gift. persons into cash by selling/assigning the policy at a discounted amount of its face value. Upon maturity, the life insurance company pays out the full face 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: . In viatical settlements the return ranges from 24% to 42% upon maturity. The company's new reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. program, a first in the industry, guarantees the return of the investor's initial outlay plus a fixed return on that principal. 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. -0-
AMERICAN BENEFITS GROUP
FINANCIAL SUMMARY FOR THE SIX MONTHS ENDED DEC. 31, 1996
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Revenues: $1,575,897
Net income before taxes: $ 40,757
Net income: $ 32,971
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 between info and stockpr.com. Also, 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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