Get Tons of Senior Life Settlements ExamplesListed below are 25 cases which show the value of senior life settlements. Remember, these are only a few of the many thousands of examples that prove the value of evaluating and valuating each element of one’s total portfolio of assets. If you learn only one lesson from these senior life settlements pages, it should be this: do not let your life insurance policy lapse, nor cash it in with the insurance company. Get an estimate of its value on the insurance secondary market. As we always caution: always get professional financial advice.
Case History 1 Client: 83 yr old female $325,000.00 Term Policy Smaller of two policies owned by insured and she no longer needed the policy. Senior Life Settlements offer = $80,000.00 Lesson: Instead of letting the policy lapse and getting $0.00 for it, the client received $80,000 for bills and gifting children and grandchildren. ________________________________________ Case History 2 Client: 87 yr old male 2.5 Million Policy Client no longer wanted to pay for the policy. He was going to surrender it for 374K (agent wanted to keep the policy in force) Policy kept in force. Senior Life Settlements offer = $1,310,000 Lesson: Instead of letting the policy lapse and getting $0.00 for it, the client received $1,310,000 for bills and gifting children and grandchildren ________________________________________
Case History 3 Client: 80 yr old male in fair health 400K Universal Life Policy $2,800.00 cash value Client no longer needed / did not want the policy; senior life settlements instead of letting the policy lapse. Life Settlement offer = $91,000.00 Lesson: Instead of letting the policy lapse and getting $0.00 for it, the client received $91,000 to fund other investments. ________________________________________
Case History 4 Client: 76-year-old male with minor health problems. $1,700,000 policy The policy was about to lapse because the client could no longer afford to keep the policy in force. Senior Life Settlements offer = $275,000 Lesson: Instead of letting the policy lapse and getting $0.00 for it, the client received $275,000 to pay medical bills. ________________________________________
Case History 5 Client: 81-year-old male in relatively good health $260,000.00 policy Annual premiums amounted to $10,300 Senior Life Settlements offer = $83,200.00 Lesson: Instead of paying on a policy he could no longer afford, letting it lapse, and getting $0.00 for it, the client received a settlement offer for $83,200.00, more money than he thought possible. ________________________________________
Case History 6 Client: 78-year-old female in relatively good health $1,000,000.00 policy Annual premiums amounted to $84,000 Snior Life Settlements offer: $160,000.00 Lesson: Instead of paying on a policy she could no longer afford, letting it lapse and getting $0.00 for it, the client received a settlement offer for $160,000.00. ________________________________________
Case History 7 Client: 76-year-old female in relatively poor health $2,000,000.00 Universal Life policy Annual premium amounted to $110,000.00. Senior Life Settlements offer: $325,000.00 Lesson: Instead of paying on a policy she could no longer afford, letting it lapse and getting $0.00 for it, the client received a settlement offer for $325,000.00. She used it to pay medical bills. This is money she did not have. ________________________________________
Case History 8 Client: 73-year-old male $1,500,000.00 Variable Universal Life policy Cash Surrender Value: $2,631.32 Senior Life Settlements offer: $348,000.00 Lesson: The senior settlement offer was $345,368.68 more than the cash surrender value. This amount of money could be a life changer for some families. Bottom line: Surrendering this policy would have cost this policy holder over a quarter of a million dollars. ________________________________________
Case History 9 Client: 86-year-old male $500,000.00 Universal Life policy Cash Surrender Value: $62,316.95 Life Settlement offer: $225,000.00 Lesson: The senior life settlement offer was $162,683.05 more than the cash surrender value. This settlement allowed this client to put more insurance into force with a lower premium. Bottom line: Simply surrendering policies will cost policy holders life changing amount of money. ________________________________________
Case History 10 Client: 83-year-old female $5,500,000.00 Universal Life policy Cash Surrender Value: $481,320.60 Life Settlement offer: $2,350,000.00 Lesson: The Life Settlement offer was $1,868,679.40 more than the cash surrender value. This settlement allowed this client to put more insurance into force with a lower premium. Bottom line: Time after time, Life Settlements prove their worth. ________________________________________
Case History 11 Client: 86-year-old male $3,000,000.00 Term policy Cash Surrender Value: $0 Life Settlement offer: $1,175,000.00 Lesson: The policy was bought to cover estate taxes, but had since become obsolete. Being a term policy it had no cash value. So, had the policy holder let it lapse, he would not have gotten any cash in hand for all the premiums h had paid over the life of the policy. With Life Settlement, he was able to reap over $1,175,000 he would not have otherwise had. ________________________________________
Case History 12 Client: 85-year-old female $600,000.00 Universal Life Policy Cash Surrender Value: $160,000 Life Settlement offer: $245,000.00 Lesson: When the policy was first placed in force, its performance was acceptable. However, due to market forces, over time, its performance became such that the policy would have lapsed had it been kept in force. The life settlement proceeds were used to purchase a lifetime income stream annuity. ________________________________________
Case History 13 Client: 75-year-old female $7,000,000.00 Universal Life Policy Cash Surrender Value: $1, 250,000 Life Settlement offer: $2,900,000 Lesson: The policy holder reaped over $1,650,000 in excess of what she would have received had she taken the cash surrender value. The client purchased a less expensive survivorship policy with a guaranteed death benefit. ________________________________________
Case History 14 Client: 69-year-old female $600,000.00 Term Policy Cash Surrender Value: $0 Life Settlement offer: $94,280 Lesson: Remember regular term policies have $0 cash surrender value, and, if lapsed, the policy holder gets nothing. With this being a Convertible Term Policy, a senior life settlement was in order. The client used her proceeds to purchase long term care insurance and a condo. ________________________________________
Case History 15 Client: 75-year-old male $4,100,000.00 Universal Life Policy Cash Surrender Value: $280,000 Life Settlement offer: $975,000 Lesson: The Life Settlement offered the client $695,000 above the policy’s cash surrender value. The client used the proceeds buy down future premiums on a new policy with a guaranteed death benefit. ________________________________________
Case History 16 Client: 81-year-old male $6,000,000.00 Convertible Term Policy Cash Surrender Value: $0 Life Settlement offer: $661,000 Lesson: The client was a business owner of whom the bank required a key man policy. Once he sold the business, the key man policy was no longer required. So, the life settlement offered the client $661,000 he could use to pay bills, gift children and grandchildren, make charitable donations, etc. ________________________________________
Case History 17 Client: 76-year-old male $7,000,000.00 Universal Life Policy Cash Surrender Value: $569,000 Life Settlement offer: $1,900,000 Lesson: The Life Settlement proceeds offered the client $1,331,000. The client bought the policy to provide funds for his wife upon his death. However, she died before he did. Therefore, he no longer needed the policy. The Life Settlement proceeds offered the client the means to pay bills, gift children and grandchildren, make charitable donations, etc. ________________________________________
Case History 18 Client: 79-year-old female $1,500,000.00 (Convertible) Term Policy Cash Surrender Value: $0 Life Settlement offer: $300,000 Lesson: The policy premium became very expensive for the client. The Life Settlement proceeds offered the client a huge lump sum of $300,000 with which she and her children could live on during these hard economic times. ________________________________________
Case History 19 Client: 76-year-old male $10,000,000.00 Universal Life Policy Cash Surrender Value: $449,000 Life Settlement offer: $2,700,000 Lesson: The policy was placed into force for estate planning purposes. When it was no longer needed, the client sought and accepted $2.7 Million for the policy, instead of a mere $449,000 cash surrender value. ________________________________________
Case History 20 Client: 79-year-old male $3,500,000.00 Universal Life Policy Cash Surrender Value: $185,000 Life Settlement offer: $970,000 Lesson: The Life Settlement proceeds exceeded the cash surrender value by $785,000. This example represents the sheer power of senior life settlements. It offers more than cash surrender value. ________________________________________
Case History 21 Client: 86-year-old female $1,000,000.00 Universal Life Policy Cash Surrender Value: $45,000 Life Settlement offer: $547,000 Lesson: The Life Settlement proceeds exceeded the cash surrender value by $502,000. This example again shows that Life Settlements beat cash surrender value time and time again. ________________________________________
Case History 22 Client: 75-year-old female $1,500,000.00 Whole Life Policy Cash Surrender Value: $72,000 Life Settlement offer: $455,000 Lesson: The Life Settlement proceeds exceeded the cash surrender value by $383,000. Once again, Life Settlements beat cash surrender value. ________________________________________
Case History 23 Client: 75-year-old female $3,350,000.00 Whole Life Policy Cash Surrender Value: $72,000 Life Settlement offer: $556,000 Lesson: The premiums were expensive, in fact, unaffordable, at $50,000 per year. Life Settlement amount exceeded the cash surrender value by $383,000. Life Settlement was used to acquire a new $3,350,000 Universal Life policy with annual premiums of $36,000. This saved the policy holder $14,000 per year. Coverage is guaranteed for life. ________________________________________
Case History 24 Client: 70-year-old male $2,000,000.00 Universal Life Policy Cash Surrender Value: $80,000 Life Settlement offer: $230,000 Lesson: The premiums were $27,000 per year. Life Settlement amount exceeded the cash surrender value by $150,000. Life Settlement was used to acquire a new $2,000,000 Universal Life policy with annual premiums of only $8,000. This saved the policy holder $19,000 per year. Coverage is guaranteed for life. ________________________________________
Case History 25 Client: Married Couple - 65+ $5,200,000.00 Survivor Universal Life Policy Cash Surrender Value: $102,000 Life Settlement offer: $585,000 Lesson: The premiums were $75,000 per year. The couple could no longer afford this. Life Settlement amount exceeded the cash surrender value by $483,000. Life settlement was used to acquire a new $5,200,000 Survivor Universal Life policy with annual premiums of only $20,000. This saved the policy holder $55,000 per year. Coverage is guaranteed for 18 years.
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