CASE STUDIES

Life Insurance Settlement Cases

The following current case studies authenticate how life insurance settlements have helped seniors in various life circumstances.

Share

CASE#1

  • POLICY
  • UNIVERSAL LIFE
  • ISSUED
  • 2001
  • CASH SURRENDER VALUE
  • $4,700.00
  • FACE AMOUNT
  • $850,000.00
  • CASH SURRENDER VALUE
  • $125,000.00

90-YEAR-OLD-FEMALE (HEALTHY FOR AGE) faced an upcoming payment of over 10 percent of the face value in annual premiums, because the policy had been under-funded for the last few years. The insured felt she was on her way to becoming a centenarian and wanted to take what she could now and enjoy her life. Her children were established and agreed to the sale as they were beneficiaries.

CASE#2

  • POLICY
  • UNIVERSAL LIFE
  • ISSUED
  • 2005
  • CASH SURRENDER VALUE
  • $9,000.00
  • FACE AMOUNT
  • $1,000,000.00
  • LOAN AMOUNT
  • $20,000.00
  • LIFELINE SETTLEMENT
  • $100K GROSS OFFER (80K TO CLIENT 20K TO PAY OFF LOAN)
79-YEAR-OLD-MALE (SOME IMPAIRMENTS) did not want to continue paying premiums on this policy. However, due to a loan previously taken out against the policy, he did not think surrendering it would be beneficial. A life settlement became a more lucrative option. We were able to pay off the loan at closing and give the seller six times the surrender value.

CASE#3

  • POLICY
  • UNIVERSAL LIFE
  • ISSUED
  • 2011
  • CASH SURRENDER VALUE
  • $0
  • FACE AMOUNT
  • $5,000,000.00
  • LIFELINE SETTLEMENT
  • $135,000.00

73-YEAR-OLD-MALE (PREFERRED HEALTH) with a 16+ year life expectancy wanted a smaller policy but would not benefit from surrendering the current policy. His financial advisor chose to reduce the amount of insurance using the proceeds from the life settlement to fund a $3M policy. The client was able to walk away from the policy with $135,000.00 vs. “0”.

CASE#4

  • POLICY
  • UNIVERSAL LIFE
  • ISSUED
  • 1996
  • CASH SURRENDER VALUE
  • $1,750,000.00
  • FACE AMOUNT
  • $5,000,000.00
  • LIFELINE SETTLEMENT
  • $135,000.00

83-YEAR-OLD-MALE (IMPARED HEALTH) needed to reduce his coverage because he was over insured due to the recent estate tax law changes. The client was able to reduce coverage of multiple policies from $12.5M to $7.5M. This was achieved by taking the max surrender value from this policy which was $1.7M and a life settlement of $375K; netting the client $2.75M