Examples of Possible Uses for Life Settlements
Jim W.
Age of Insured: 74
Policy’s Face Value: $750,000
Sale Price: $279,000
Use: Turned his unwanted, unneeded policy into immediate cash on hand to fund alternative health care.A new market is now providing options to those who thought they had none. Jim W. is one such individual that recently sold his old insurance policy for a lump sum of cash. He was then able to pay for health care options that he would not have been able to afford otherwise. "I'd been paying insurance premiums for years. I thought that money was long gone. I could not have been more wrong. Discovering these unknown options has given me more time with my family. I was even able to use some of the proceeds to purchase a new policy with the same coverage! It is truly a rare win-win situation for everyone involved, most importantly my family."*
James R., CFO
Age of Insured: 76
Policy’s Face Value: Portfolio of $6,500,000
Sale Price: $1,993,000
Use: Sold company’s unwanted key-man insurance to fund new ventures rather than continuing to pay out-dated premiums.Recently, James R, CFO of a mid sized national company, was doing due diligence for the acquisition of a competitor company. He found that the company being purchased owned two key man term life insurance policies on the current owner (age 76). The policies had a total face amount of $6,500,000. Typically, since the policies would no longer be needed and they were term policies with no cash value, the premiums would be a unnecessary additional expense. Most purchasers would either allow the retiring insured to take over the policies or lapse them once the transaction was complete. It came to mind that he had heard a speaker at a recent CFO conference talking about Life Settlements. He decided to do some research. During his research he found LifeSettlement-Awareness.com on the internet. Said Ryan, “They arranged for an Insurance Professional in my area to meet with me at my office. He was extremely knowledgeable and not only provided me with an in depth explanation of how a Life Settlement transaction works but also gave me some insight on possible application of the proceeds of the transaction. He also shared with me how Life Settlements can be used as a powerful business and personal financial planning tool. Something my old insurance man had never done. He confirmed the fact that, instead of lapsing or surrendering the term policies, they could quite possibly be sold for a significant amount of cash to a third party. My company was fortunate to have found LifeSettlementAwareness.com. Through their network of Master Brokers, we were able to obtain multiple offers and get top dollar for the policies. The money we could have lost by terminating the term policies was phenomenal. In the process, we also found out that other Universal Life policies on certain key men who were nearing retirement could be sold as well. My being aware of Life Settlements when the seller was not made a nearly $2,000,000 positive economic impact on my company. Needless to say, my CEO is pretty happy.”
Mark G., Small Family Business Owner
Age of Insured: 78
Policy’s Face Value: $2,000,000
Sale Price: $442,000
Use: Sold unwanted Universal Life Policy taken out on retired Mother to fund Mother’s long term health care.Mark G., who runs a 28 year old family owned electronics parts supplier company, received a curious brochure in the mail. The brochure talked about something called Life Settlements and said that existing insurance policies can be sold for cash. Having never heard of them, he decided to call the toll free number to find out more. As a result of his call to LifeSettlement-Awareness.com, he was introduced to an Insurance Professional from his area. At a meeting in his office, he found that an old Universal Life insurance policy that his company owned on his mother (now age 78) who founded the company could be sold for cash. Said Green, “The policy was originally taken out on my mother for business purposes some years ago. She has since retired from the family business and is experiencing some health issues. We no longer needed the policy for the business, but we were getting concerned about how to fund long term health care for her. We were able to turn the old Universal Life policy in to a lot more cash than we would have received from the cash surrender value in the policy. We also found out that an old term policy we have on her could be sold if we want. With the help of the Insurance Professional, we took the proceeds from the sale and purchased a paid up long term care policy. He also explained how Life Settlements can be used as a powerful business and personal financial planning tool for my own retirement. Something my old insurance man had never done. The ability to turn the old policies (which were getting pretty expensive anyway) into cash has taken a lot of pressure off of me. I’m sure glad I took the time to look into Life Settlements and contact LifeSettlementAwareness.com.”
* Names and figures have been altered for privacy concerns
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