Upgraded Replacement Case Example
This client needed to continue his life insurance coverage. His existing term policy contained conversion privileges. Instead of letting his existing term policy lapse, we were able to generate a life settlement offer. The proceeds from this transaction were used to fund a new term life policy with premiums slightly lower (due to changes in the pricing of the insurance products) for two full years. So, the client walked away with 9 additional years of term coverage without a premium for 2 years and still maintained the conversion privilege if needed at a later date.
Sale of a term life insurance policy
A life insurance agent recently conducted a yearly review of his client’s life insurance policy. Noting that the policy was soon to run out of conversion privilege, he decided to explore options on this policy. After realizing the estate had shrunk and the need for insurance was less than previously calculated, the agent recommended a Life Settlement for the client.
After waiting for the 8 week underwriting process to complete, he was happy to learn that SBA had found an institutional life settlement provider who would allow him to convert the policy as the writing agent and sell the new universal life policy for a percentage of the death benefit. Without the annual review, the agent never would have found the opportunity that the client needed to fund a long term care product that he desired.
Life Settlement funds nursing home expense
Recently, the son of an 88 year old male approached Settlement Benefits Association to request an appraisal on his father’s life insurance policy. The son could no longer afford to pay both the premiums on the policy and the nursing home expenses the father required. Although the $205,000 policy is considered small in our industry and the insurance carrier rating was “B”, we were able to overcome these hurdles and generate bids by showing his extensive medical history to the life expectancy underwriters.
The final offer satisfied the son, and we were to complete the transaction for the family.
SBA surpasses competiting broker’s offer by over $100,000
This client’s estate planning attorney contacted Settlement Benefits Association to conduct a Life Settlement appraisal. They had a combined offer from another broker of $900,000 for the client’s two $5,000,000 policies. After extensive negotiations with various licensed providers, SBA was able to get the client $1,010,000. By being thorough, SBA provided significant value to this file and this client.
Life Settlement helps relieve financial burden
Recently, a 74 year old male in good health approached his financial planner with a problem. One of his children was in need of some financial assistance to cover some extraordinary medical costs. Since the planner had previously completed some Life Settlement cases with Settlement Benefits Association, he presented the idea of selling the client’s $600,000 policy. He explained how the cash generated from the sale could be used in any manner.
After underwriting the case, we were able to secure 6 offers from licensed providers. The highest offer, $192,000 would be enough cash to accomplish the client’s goal, so we completed the transaction.
Recent Life Settlement Case Summary
This client had two life insurance policies, totaling $750,000 of universal life. He decided to have both policies shopped on the secondary marketplace, which we did for him. This client is 70 years old with health issues. His estate no longer needed the coverage.
After several weeks of generating competitive bids, we were able to secure a high offer of $222,838 representing almost 18 times the cash in the policies. The agent presented this to the estate, and they agreed that taking this offer would be the best course of action.
Life Settlement Case Summary
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
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
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
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.
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- Upgraded Replacement Case Example
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