Example 1: Premium is too expensive
82-year-old female with a $2,000,000 Universal Life policy
Cash surrender value is $988, life settlement offer price to owner is $205,627

Seeking to lower the premiums of her life insurance policy, the insured spoke to her advisor. After reviewing her needs, the advisor determined that the policy was no longer needed and that she met basic criteria for a life settlement. The insured then sold the policy for a sum substantially greater than the cash surrender value.

Example 2: Change in policy value
78-year-old male with a $500,000 Universal Life policy
Cash surrender value is $66, life settlement offer price to owner is $47,500

Having essentially used up the equity from the cash surrender value to fund premiums, the insured had a decision to make regarding continuing coverage and paying expensive premiums or surrendering the policy for virtually nothing. After consulting with his financial advisor, it was determined that policy was no longer needed and insured was a candidate for a life settlement. The insured then sold the policy for a sum much greater than the cash surrender value.

Example 3: Estate tax laws changed
88-year-old female with a $600,000 Second-to-Die UL policy
Cash surrender value is $518, life settlement offer price to owner is $80,000

Originally purchased for estate planning needs, the insured’s policy had grown obsolete due to recent changes to estate tax laws. No longer needing the coverage, the insured consulted with her advisor who determined a life settlement was the most appropriate action.

Example 4: Medical care needed
68-year-old male with a $1,000,000 Universal Life policy
Cash surrender value is $2,218, life settlement offer price to owner is $100,676

Faced with growing medical concerns, the insured consulted with his advisor. They reviewed the situation and the advisor determined the insured was a candidate for a life settlement. After explaining to the insured that his policy could be sold for a sum much greater than its cash surrender value, the insured sold it and used the proceeds to pay for much needed medical care.

Example 5: Gifting desired
87-year-old female with a $500,000 Universal Life policy
Cash surrender value is $1,363, life settlement offer price to owner is $88,113

After experiencing the joy having grandchildren and great grandchildren, the insured had the growing desire to help support their educational needs. After consulting with an advisor, it was determined that the insured’s life insurance policy could be sold through a life settlement. After completing the transaction, the seller’s dream became a reality, one that she could experience during her lifetime.