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Case Studies
Cash Surrender
Male : 79 years old : Universal Life
| Face Amount |
$1,000,000 |
| CSV |
$1,022.68 |
| Net to Policy Owner |
$425,000 |
| Value Created |
41,557 % |
Motivation for Sale:
Both insured/owner and beneficiaries did not want to pay on-going premiums. Rather than surrender the policy to an insurance company for an immaterial value, the client chose to sell the policy on the secondary market, and disperse the funds to his children.
Estate Planning
Male : 74 years old : Whole Life
| Face Amount |
$3,500,000 |
| CSV |
$273,873 |
| Net to Policy Owner |
$1,190,000 |
| Value Created |
435 % |
Motivation for Sale:
The owner/insured had skillfully handled all potential estate planning needs. It was determined that this policy was no longer needed and it was sold for over 4 times the CSV.
Business Needs
Male & Female : 80 years old : Survivorship
| Face Amount |
$5,000,000 |
| CSV |
$23,816 |
| Net to Policy Owner |
$1,500,000 |
| Value Created |
6,298% |
Motivation for Sale:
The second generation running family business was confronting serious cash flow issues. Parents/Founders of the company realized that the policy would potentially lapse as a result of current business factors. Rather than surrender the policy and still face a potentially insurmountable financial situation, the policy owners sold the policy and resolved all of these problems!
Quality of Life
Female : 52 years old : Term
| Face Amount |
$2,000,000 |
| CSV |
$0 |
| Net to Policy Owner |
$750,000 |
Motivation for Sale:
Husband and wife decided that if they received a substantial value for their policy they would rather travel with their children instead of ultimately receiving the death benefit.
Policy Lapse
Male : 75 years old : Term
| Face Amount |
$250,000 |
| CSV |
$0 |
| Net to Policy Owner |
$25,000 |
Motivation for Sale:
Insured could not afford conversion or ART premiums, as a result the policy was going to lapse.
Key Man
Male : 76 years old : Term
| Face Amount |
$10,000,000 |
| CSV |
$0 |
| Net to Policy Owner |
$2,750,000 |
Motivation for Sale:
Policy no longer needed due to retirement. Funds from sale were used to purchase vacation home & LTC policies.
Charitable Giving
Female : 82 years old : Universal Life
| Face Amount |
$5,000,000 |
| CSV |
$48,000 |
| Net to Policy Owner |
$1,200,000 |
| Value Created |
2,500% |
Motivation for Sale:
Insured was a key donor to a major university that needed funds to underwrite current programs. Rather than wait to receive the death benefit in the future, the insured and the university felt it was more beneficial to utilize the sale of the policy to meet present day issues.
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