Overview
A Life Settlement is the sale of an existing life
insurance policy to a third-party for a single lump sum payment.
This third-party - typically a financial institution or an investment
group - assumes sole responsibility for the premium payments and
becomes a new beneficiary of the policy.
Policyholders often are
able to sell contracts for 200% to 300% over
existing cash values. Additionally term life insurance now has a secondary market on the
sale of conversion rights.
A Life Settlement is an outstanding opportunity
for policy holders to maximize the cash value of current policies
and replace under performing more costly coverage with a replacement
policy funded by the increased values from the fair market appraisal.
In other words someone else's monies funds your
more cost effective replacement contract.
Advanced Planning Group
has over 30 years of experience in the age 65+ marketplace in securing
replacement coverage for individuals with impaired health issues.
For a free no obligation insurance appraisal, please complete and
return the
attached form below. Or for immediate attention, please call
Donald Harivel at 888-782-3433. |
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Offer Price: 411%
(Greater Than Cash Surrender Value) |
Offer Price: 205%
(Greater Than Cash Surrender Value) |
Offer Price: 268%
(Greater Than Cash Surrender Value) |
| Insured: |
87-year-old male |
| Type of Policy: |
Universal Life |
| Face Amount: |
$6,500,000 |
| Cash Surrender Value |
$670,000 |
| Offer Price to Policy Owner: |
$2,725,000 |
|
| Insured: |
75-year-old male |
| Type of Policy: |
Universal Life |
| Face Amount: |
$1,500,000 |
| Cash Surrender Value |
$198,000 |
| Offer Price to Policy
Owner: |
$406,000 |
|
| Insured: |
78-year-old male 76-year-old
female |
| Type of Policy: |
Second to Die Universal
Life |
| Face Amount: |
$2,000,000 |
| Combined Cash Surrender
Value |
$142,000 |
| Offer Price to Policy
Owner: |
$380,000 |
|
Reason for policy sale:
Existing life insurance policies premiums were increasing
by over $2,000,000 above original projected premiums.
Life settlement monies used to purchase
new insurance with the same face amount of $6,500,000 which
avoided $2,000,000 premium increase and possible lapse of existing
contract.
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Reason for policy sale:
Client required policy to offset estate
tax on large retirement account.
Additional funds used to reduce annual
outlay on new insurance by 40% with the same face amount of
$1,500,000.
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Reason for policy sale:
Reduced investment return burdened
client with significant premiums.
Additional settlement funds reduced annual
outlay on identical $2,000,000 contract by 35% with guarantees
increased from 2 years to 20 years.
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| Insured: |
79-year-old female |
| Type of Policy: |
3
contracts
Universal Life |
| Face Amount: |
$3,500,000 |
| Cash Surrender Value: |
$0 |
| Offer Price to Policy Owner: |
$875,000 |
|
| Insured: |
75-year-old female |
| Type of Policy: |
Universal Life |
| Face Amount: |
$2,000,000 |
| Cash Surrender Value: |
$0 |
| Offer Price to Policy Owner: |
$142,000 |
|
| Insured: |
76-year-old female |
| Type of Policy: |
Universal Life |
Face
Amount: |
$1,800,000 |
| Cash Surrender Value: |
$175,000 |
Offer Price to Policy
Owner: |
$400,000 |
|
Reason for Policy Sale:
Settlement offer used to purchase
replacement coverage with an identical face amount with
a $100,000 annual premium savings.
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Objective:
Initial contract rated due to health.
Settlement monies used to buy down rating to
standard savings $600,000 in future premiums.
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Objective:
Due to decrease in interest rates
premiums escalated by 30% to maturity Client opted to spend
same premiums and increase coverage to $2,500,000 a $700,000
increase no additional outlay with use of additional sale
proceeds.
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| Fair Market Appraisal & Exchange Monetizing
Unused Capacity Specialist |
Advanced Planning Group disclaims
any expressed or implied warranty as to the future settlement
value of any contract. Each insurance policy’s future value
is determined by market conditions, health records, carrier
rating, along with numerous other factors to determine the
ultimate potential valuation. Anyone with whom this material
is promoted, marketed or recommended should consult with
their own independent qualified tax advisors regarding their
particular situation. |
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