Life Settlement Case Study 2

Life Settlement Case History 1
Strategy to Purchase a New Policy for Spouse

Profile : Female age 82 and Male age 83 without any substantial health issues.
Type of Insurance: Joint Survivorship
Death Benefit: $6,000,000
Premium: $145,000/Annually
Surrender Value: $105,000

Issue : The client over funded the policy at first, but the policy is now running out of cash value to maintain the policy for the upcoming year. The advisor understands the clients' need for insurances, and suggested a life settlement. Because of the clients' current financial plan, the cash settlement will be reallocated to another area of their wealth management plan.

Client sold the policy for $755,000, creating an additional $650,000 for the families charitable planning. The client referred other families that had similar circumstances and lacked the strategy to develop their own charitable giving plan.

Gain to the Client : Policy owner was able to use the cash settlement to provide funds for charitable giving, and to establish a charitable remainder trust for their family.

This life settlement case study is just one example of how life settlements can be a beneficial financial planning tool.