Mr. & Mrs. Smith
- »Both are 80 years old and each has a universal life policy that total $500,000, set up when their children were young
- »With the children (and grandchildren) long grown and with plenty of assets in their overall portfolio, these policies were just not as crucial to their financial well-being and legacy
- »Yet talking to the insurance company, they found that the two policies had a cash surrender value totaling just $50,000
Exploring a Life Settlement, the Smith's obtained offers totaling $185,000 (nearly 3.5 times the surrender value) for the two policies and were able to use the cash infusion to significantly impact the quality of their lives.
Mr. Jones
- »A 75 year-old retired business owner who owns two life insurance policies totaling $4 million that he originally purchased at the height of his business
- »Although he still wants the insurance benefits, his current policies come with annual premiums totaling $367,000
- »In an effort to reduce premiums without sacrificing his death benefits, he settled his current life insurance and used the cash to help purchase a new, less expensive life insurance policy with the same $4 million death benefit
- »Shopping the policies together, a Life Settlement offer came in at $900,000, which was available to roll into a new policy
Mr. Jones purchased the new policy with the same death benefit and annual premiums totaling $257,000-a premium savings of $110,000 per year!
Mrs. Richards
- »Age 69 with a universal life insurance policy with a face amount totaling $1,000,000
- »This policy carries a cash surrender value of just $40,000, well below her current needs
A Life Settlement offer came in at $350,000 based on the policy and her current health, representing a huge increase over the surrender value and greatly improving her financial standing.
Note: Case Studies are for illustrative purposes only and do not represent actual results of any Life Settlement.