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Life Settlement Examples
These are real-life examples of recent life settlements... It doesn't matter what kind of policy you own, you can easily discover how much your policy is worth. Click here to find out. Estate tax laws changed Female, 82 years old A policy was purchased under her previous estate plan, but it was now obsolete. After consultation, she decided the policy no longer met her needs and it should be sold instead of surrendering it or letting it lapse. She sold her policy and received $632,000 above her cash surrender value. She then retained a new, reduced-coverage policy. Long-term medical care Male, 68 years old This man had a $600,000 face value on his universal life policy. Unfortunately, an unforeseen medical condition, and its resulting high costs, was a growing concern. He decided to sell his policy to pay for oncoming medical costs. His cash surrender value was $29,845 and he sold his policy for $94,900—an additional profit of $65,055. Premium is unaffordable Female, 85 years old At 85 years old, this woman's premiums, which were once an acceptable expense, had now become a financial burden. She decided to sell her policy and retain a reduced amount of coverage, with lower premiums. She also wanted extra cash to pay for living expenses. She sold her $1.75 million face amount policy and received a life settlement payout of $428,445 more than her cash surrender value. Wants to provide gifting to family Male, 77 years old At 77 years old, his coverage was no longer needed. He wanted to give his children and grandchildren money for college, homes and travel. After consultation, he chose to sell his policy and obtain a smaller coverage amount. He sold his policy for $228,916 more than his face value and gifted the remaining amount to his children Examples of Real Life Settlements from The Senior Journal
THE WALL STREET JOURNAL Life Insurance For Sale—In a Secondary Market In September 2004, the Wall Street Journal wrote... "...Life Settlements can make sense for sellers who no longer need coverage and no longer want to pay premiums. Selling an unwanted policy increasingly is becoming a financial management tool for older people who face a cash crunch, who don't want to rely on children for financial support or who are trying to find money for costly long-term care insurance. Some holders of term policies sell them because they've found equal or better insurance coverage at a lower rate." "...For people with universal-life coverage, which combines a death benefit with a savings component, the value of a policy in a life-settlement transaction is generally at least three times the underlying cash value of the policy...Even term policies, which have no underlying cash value and typically disappear at the end of a set amount of time, are worth something—often between 10% and 30% of the policy's face value." The article references three examples where policies were sold in life settlement transactions:
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Your policy most likely qualifies—most policies do.
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