Term Converted to Universal

73-Year-Old Male
Term Policy Converted to Guaranteed Universal Life
Year Issued: 
2 009
Face Amount: 
Surrender Value: 
Lifeline Settement: 

The insured owned a successful medium-sized import-export company, which he recently sold for less than anticipated due to the recession. At age 40 he had taken out three term policies, worth $3 million each, face value. Then, three years ago, with the terms expiring and his two sons grown, he converted each policy to a guaranteed universal life policy.

Unfortunately, and not long ago, his 71-year-old wife was diagnosed with rapidly advancing Alzheimer’s disease. Faced with the prospect of eventually needing long-term care for her, and with a minimal cash value on his policies and no surrender value because of the recent conversion, as well as the need to reconstitute his funds never replenished after paying off substantial business debt pre-sale, he and his financial advisor decided that the best course of action would be to initiate a life-settlement through The Lifeline Program®.

With no possibility of obtaining any cash from his insurance company, The Lifeline Program® came through, finding nearly half a million dollars in each of his three policies, resulting in a cash payout of $1,440,000.

He put half the money into Treasury notes and the other half into a medical savings account, with the intent that it be used when his wife began to need long-term care at home, and then eventually when she enter a specialized private Alzheimer’s facility not covered by Medicare or his private health insurance. He was also able to completely eliminate the monthly premium expense, which The Lifeline Program® assumed upon completion of the settlement transaction.

**While the storyline contained in this case study is a dramatization so as to protect the identity and privacy of the policy holder and insured, the policy face amount, age of insured, and policy sale amount realized are actual results of settlements offered by The Lifeline Program®.