Life Settlement Case Study# 1:
77-year-old male
- Life Insurance Policy Face Value: $5M
- Life Insurance Annual Premium: $214,500
- Life Setlement Offer: $800,000
- Life Insurance Policy Type: Universal Life Insurance
- Life Insurance Cash Value: $0
Life Settlement Solution: The client had taken out a life insurance policy years ago in order to cover the taxes on his estate. His estate no longer required life insurance coverage for tax planning purposes and his life insurance policy had no cash surrender value. He did not want to lose all the money he had paid in premiums over the years, so he decided to pursue a life settlement. We were able to secure a life settlement appraisal that netted the client $800,000.
Life Settlement Case Study #2:
88-year-old male
- Life Insurance Policy Face Value: $1M
- Life Insurance Annual Premium: $81,500
- Life Settlement Offer: $180,000
- Life Insurance Policy Type: Universal Life Insurance
- Life Insurance Cash Value: $10,786
Life Settlement Solution: This case involved an 88-year-old male in declining health whom needed money for medical treatment. His agent suggested that he explore a life settlement to see if he could get more out of the policy than just the cash value. Thanks to his agent’s advice, he walked away with a life settlement that was more than 16 times his policy’s cash value, greatly easing the burden of paying for his medical treatment.
Life Settlement Case Study #3:
74-year old male
- Life Insurance Policy Face Value: $3.75M
- Life Insurance Annual Premium: $136,304
- Life Settlement Offer: $610,000
- Life Insurance Policy Type: UL
- Life Insurance Cash Value: $0
Life Settlement Solution: The client’s estate had decreased, and it had become very difficult for him to pay his life insurance policy premium. He needed to sell the life insurance policy or it was going to lapse. Instead of simply accepting the cash value, he decided to test the market and find out the value of his policy from a life settlement perspective. He was elated to receive a life settlement of more than half a million dollars, especially since his policy had no cash value.
*Case On File