Life Settlement Case Summary
May 7, 2008 | Comments Off
A 75 year old male with a $200,000 term policy past its conversion period came to Settlement Benefits Association for a Life Settlement appraisal. The client’s premiums were going to triple in three years and he needed to sell the policy.
Settlement Benefits was able to shop the entire institutional marketplace and find a provider willing to purchase the policy for $43,000. The client used the proceeds to pay his existing universal life policy, eliminating premiums for the next few years.
Life Settlement Case Summary
April 23, 2008 | Comments Off
A 65 year old male in relatively good health presented a combined $1.3M in total insurance through his Certified Financial Planner. The coverage was no longer needed since his wife had recently passed away. The insured, who was also the policy owner, wanted a way to fund his grandchildren’s college fund despite his limited liquidity.
As a professional brokerage, Settlement Benefits Association shopped each policy individually to literally dozens of licensed Life Settlement providers. Given the different face values of each policy, we ended up with bids from 8 different providers. We created a scenario with the highest bids for each policy and combined the paperwork from 2 different providers to best suit his needs.
Working with the agent, we presented a final offer to the client of over $238k. He gladly accepted this Life Settlement and has purchased the college savings product he desired as well as an annuity for himself.
Case Summary on an 79 year old male
March 7, 2008 | Comments Off
This client had several term policies with a combined death benefit of $900,000. Premiums were 2.5% to maturity and he needed a better product to suit his estate. He accepted an offer of $219,000 and used the money to purchase a long term care plan.
Case Summary on a 61 year old male
January 7, 2008 | Comments Off
SBA was given an opportunity to work with a 61 year old client who had significant health issues. His policy was in jeopardy of lapsing and his financial planner determined that his life policy was no longer needed. After an initial offer of $18,000, were able to secure bids from three separate licensed providers, and push the final offer to a total of $49,000 to the client. He was very pleased with our efforts and our ability to secure the highest possible settlement for him, and proceeded to transact his policy. Additionally, the financial planner was able to consider to a wider array of options while updating the client’s financial plan.
Case Summary on a 82 year old female
October 22, 2007 | Comments Off
The planned giving professional at an assisted living facility contacted us regarding this case. He had a client who could no longer afford the care of his facility. She had previously donated her own life insurancy policy to the facility, with the promise to continue making premium payments, which she also could no longer afford. Seeking creative solutions that would allow his client to stay at the facility, he asked for an evaluation of this charity-owned $1,000,000 universal life policy. After shopping the marketplace, we determined the fair market value of the policy to be $150,000, which they decided to accept. The proceeds were used to pay for the client’s care and create a win-win situation for everybody.
Case Summary on a 71 year old male
October 22, 2007 | Comments Off
This client approached us about conducting a policy evaluation on his $200,000 universal life policy. With his premiums of a little over $12,000 annually and no surrender value left in the policy, he no longer wanted to maintain the coverage. Although it is more difficult to gather bids on smaller face values, we were able to get 4 competitive bids on this case. The client accepted the bid of $54,000.
Case Summary on a 66 year old male
October 22, 2007 | Comments Off
This client approached SBA about his desire to appraise a term life policy that he was not going to convert and was going to lapse. We shopped the market extensively on his $2,000,000 term policy and were able to secure a high bid of over $230,000. The client gladly accepted and used the proceeds to pay off debt.
Case Summary on a 78 year old female
June 22, 2007 | Comments Off
This case, brought to us by the original writing agent on the insurance policy, was part of an estate that no longer needed this additional $750,000 worth of insurance protection. The annual premiums were approximately $19,000. The client accepted an $110,000 offer, which represented almost 6 times the $19,000 cash value of the policy. The proceeds were used to fund a college savings account for her grandchildren.
Case Summary on a 84 year old male and 81 year old female
April 22, 2006 | Comments Off
These clients anticipated changing needs in their estate plan. They asked us to evaluate part of their insurance portfolio. After careful consideration, they decided to settle a $2,000,000 joint survivorship universal policy and a $1,000,000 joint survivorship universal policy. The high bids they accepted were $572,580 (16 times cash value) and $260,000 (13 times cash value) respectively.
Recent Resources
- Life Settlement Case Summary
- Praise from a Life Settlement Provider
- Why Life Insurance Works In A Turbulent Market
- Life Settlement Case Summary
- Praise from a Marketing GA in Weston, FL
- Case Summary on an 79 year old male
Categories
- Articles for Financial Professionals
- Articles for Policy Owners
- Case Summaries
- Financial Professional Brochure
- Other Resources
- Press Releases
- Resources
- Society of Financial Service Professionals
- Testimonials
- Wall Street Journal
