L BONDS

$1,000,000,000 OFFERING

INVESTMENT OBJECTIVE

Investment Objective: Income with defined liquidity term1

FEATURES

  • $25,000 minimum investment
  • May ladder different terms with minimum $10,000 per bond
  • Terms ranging from 2 to 7 years
  • Interest rates from 5.5% to 8.5%1
  • Monthly interest payments1
  • DTC eligible, twice per month

Redemption features

  • Auto renewals2

1 There is no guarantee our investment objective will be achieved.
2 At term and rate currently effective. Investor may choose to opt out of the renewal

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RISK CONSIDERATIONS

GWG Holdings investments involve a high degree of risk and investors should read the Prospectus for a comprehensive listing of those risks. A summary of the risks include, but are not limited to:

An investment in L Bonds may be considered speculative and involves a high degree of risk, including the risk of losing your entire investment.

Investing in life insurance assets in the secondary market is a relatively new and evolving market. Our ability to source and invest in life insurance assets at attractive prices materially depends on the continued growth of the secondary market for life insurance and the continued solvency of life insurance companies that pay the face value of life insurance policy benefits. Any changes to the assumptions or development of the secondary market for life insurance policies may have an adverse impact that includes the risk of loss of the investment.

The valuation of our portfolio of life insurance assets — the principal asset on our balance sheet — requires us to make material assumptions that may ultimately prove to be incorrect. This may result in our paying more for the life insurance assets than they are actually worth and cause us to default on the L Bonds, resulting in a risk of loss of the investment. These assumptions include appropriate discount rates, cash flow projections, and the life expectancy estimates we use for these purposes, any of which may ultimately prove to be inaccurate.

We obtain the funds to acquire our life insurance assets almost entirely through the issuance of debt, such as the L Bonds. We believe we will have continued access to such financing in order to purchase and finance a large and diversified portfolio of life insurance assets, and pay our ongoing expenses, including the payment of interest to L Bond investors, until we begin receiving significant revenues from the receipt of life insurance policy benefits from the portfolio. Even if we obtain the financing required, we may not receive life insurance policy benefits that match or meet our projections in time to earn profits after the payment of our expenses.

If we are unable to issue and sell additional L Bonds, our ability to pay interest to L Bond investors could be adversely affected.

Upon maturity, there is an automatic renewal of L Bonds unless investors elect repayment.

If a significant number of L Bonds investors demand repayment upon maturity instead of renewing at a time when we do not have sufficient capital, we may be forced to liquidate some of our life insurance assets, which could have an adverse affect on our ability to pay L Bond investors.

Changes in state or federal laws and regulations governing our business, or changes to the interpretation of such laws and regulations, could materially or negatively affect our business.

Our investment in BEN is subject to a number of risks, including BEN not being able to operate its business successfully or obtain a listing for its common units, our limited ability to influence BEN’s management decisions, BEN’s significant debt obligations, and BEN’s ability to dilute our percentage ownership of BEN. Before making an investment in our L Bonds, potential investors should carefully consider the risk factors relating to our BEN investment contained in our public filings on file with the Securities and Exchange Commission.

The Prospectus provides a comprehensive listing of risks. A summary of those risks include, but are not limited to: a continued need to access financing, changes in economic environments including interest rates, the fact that L Bonds are subordinate to senior debt of GWG Holdings including any senior credit facility, and other factors.

L Bonds may be called and redeemed at any time without penalty or premium.

We may experience restrictions in cash flows available for payment of principal and interest on the L Bonds.

Investments in L Bonds shall be considered illiquid until their stated maturity.

Life insurance assets will not be direct collateral for obligations under the L Bonds.

IMPORTANT INFORMATION

Information is subject to change without notice and may not be updated. GWG Holdings is under no obligation to update any information included herein. The information and expressions of opinions are subject to change without notice and speak only as the respective dates in which they are made.

Bonds are secured by the assets of GWG Holdings and a pledge of all common stock by its largest stockholders. Importantly, GWG Holdings’ most significant assets are cash and its investment in subsidiaries. Obligations under the L Bonds are also guaranteed by its subsidiary. The majority of the life insurance policy assets are held in GWG DLP Funding IV, LLC, which is a direct subsidiary of GWG Life, LLC. The life insurance policies held by GWG DLP IV will not be collateral for obligations under the L Bonds, although the guarantee and collateral provided by GWG Life will include its ownership interest in GWG DLP IV. These facts present a risk to investors that the collateral security granted by the subsidiary for obligations under the L Bonds may be insufficient to repay the L Bonds upon an event of default.