Here is a sample of policy-owners taking advantage of the new secondary market for life insurance policies. These are great examples of how the life settlement process worked for them.
Key person policy insuring retired partner with $200,000 annual premium due in 90 days
Insured: Male age 82
Policy Type: Universal Life
Face Amount: $5,000,000
Cash Surrender Value: $87,000
Prospective Offer: $1,983,000
The Company sold the policy and used the proceeds to purchase stock from the retired partner. The retired partner received cash that provided retirement income. The company turned a passive asset worth $87,000 into $1,983,000 in cash and got out from under a $200,000 annual expense.
A business was sold and policies transferred to majority shareholder with $10,000,000 of other coverage in trust
Insured: Male age 79
Policy Type: Universal Life
Face Amount: $2,700,000
Cash Surrender Value: $120,000
Prospective Offer: $477,000
Shareholder realized a profit of $357,000 on the sale of a policy that was no longer needed.
Repositioning of Needs
Insured: Male age 75
Policy Type: Convertible Term
Face Amount: $1,500,000
Cash Surrender Value: $0
Prospective Offer: $97,000
Life insurance for personal financial security was no longer needed. Policy with zero value was sold for $97,000 and used to purchase long term care insurance.
Repositioning of coverage
Insured: Male age 83
Female age 79
Policy Type: Survivor Universal Life
Face Amount: $6,300,000
Cash Surrender Value: $811,000
Prospective Offer: $1,112,000
Client was able to use proceeds to help purchase new coverage with a no-lapse guarantee and save $60,000 annually.
Liquidate Life, LLC
15535 Curwood Drive
Colorado Springs, CO 80921
Phone: (720) 988.3904
Email: info@liquidatelife.com
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