Case Studies
Insurance Re-Buy
- Female Client, age 79, with $6.8 million policy with little cash value
- Client was going to let the policy lapse
- Policy was purchased for $3.1 million
- Substantial additional life insurance coverage was purchased with lower premium
Key-Man Coverage
- Business owner, age 67 with $3.5 million key man policy with little cash value and escalating premiums
- Business owner was going to let the policy lapse
- Policy was purchased for $500,000 and business owner felt he had received the funds for something he had already written off as without value
Obsolete Policy
- Male Client, age 73 with $2 million policy with no cash value
- Recent reduction in estate tax liability combined with giving strategies rendered the policy unnecessary
- Policy was purchased for $720,000
- Funds were used to purchase both a long term care policy and an annuity
- Client was thrilled to find a market for his policy which allowed him to complete his financial plan.
- His planner was able to address two needs and through the life settlement was able to fund them
Term Conversion Case
- Male client, age 71 with $7.5 million face term policy due to be converted
- Advisor suggested client have policy appraised prior to conversion
- Policy was purchased for $224k
- Proceeds were used to purchase new insurance with lower premiums
Estate Liability Change
- Female, age 72 with $12 million face with decreased estate tax liability
- Advisor suggested client settle existing policy and use proceeds to fund more appropriate coverage
- Policy was purchased for $1.75 million
- New insurance to address reduced liability purchased.