Case Study Examples
We are the market makers for the Life Settlement industry and we get the best results for the policy owners and their advisors.
| Universal Life | Term |
Face Amount: $6 million |
Face Amount: $10 million Cash Value: 0 Male Insured Age: 73 Client sold policy using a life settlement for: $430,000 Agent's Referral Fee: $85,000 Agent's Conversion Commission: $392,000 |
| Universal Life | Whole Life/Term Rider |
| Face Amount: $650,000 Cash Value:$15,000 Male Insured Age: 84 Client sold policy using a life settlement for: $135,000 Agent's Referral Fee: $14,000 |
Face Amount: $4.5 million Cash Value:$178,000 Male Insured Age: 69 Client sold policy using a life settlement for: $275,000 Agent's Referral Fee: $92,000 |
| Whole Life | Universal Variable Life |
| Face Amount: $6 million Cash Value: $1.05 million Male Insured Age: 83 Client sold policy using a life settlement for: $1.4 million Agent's Referral Fee:$160,000 |
Face Amount: $12 million Cash Value: $1.2 million Male Insured Age: 75 Client sold policy using a life settlement for: $2.4 million Agent's Referral Fee: $345,000 |
Profile for a Life Settlement
The Premium Finance Strategy
Example 1:
Second-to-Die Universal Life
Face Amount: $2.5 million
Cash Value: $0
Male: Age 78
Female: Age 80
Client Sold Policy for: $700,000
A husband and wife discovered that they needed more life insurance for estate planning liquidity.
They were reluctant to buy the prescribed $10 million that was necessary for the proper coverage. Their financial advisor heard that they could possibly sell the policy in the secondary market and perhaps raise enough cash for a replacement policy that would fit their needs. The policy ultimately sold for $700,000.
The solution was to use the proceeds or "dump-in" for a premium financed policy that enabled the couple to "leverage the insurance policy" and now easily afford their additional coverage.
The Term Strategy
Example 2:
Term Insurance
Face Amount: $10 million
Cash Value: $0
Male: Age 74
Client Sold Policy for: $430,000
The client was a retiring CEO of a California Corporation. He had a $10 million key-man policy that he no longer needed. He had the privilege however to convert the policy to Universal Life.
He decided, like most, to let the policy go. He subsequently learned that he was a candidate for a life settlement. He could not believe that he could actually get money from a policy with zero cash.
He decided to sell the policy and instead of paying the $400,000 per year in premiums he received a check for $430,000 and the agent and record received full compensation for the conversation that amounted to almost 100% of the first year target premiums of $400,000.
