UL with No Surrender Value
The insured was a corporate attorney and partner in a successful Southwestern law firm, where, until very recently, he still consulted a day or two a week after his official retirement five years ago. Mainly for reasons having to do with charitable remainder trust replacement and annuity maximization, he took out a universal life policy with a face value amount of $2 million.
With his financial and corporate obligations changed, his wife having passed away two years before, and his three daughters and their families living in New York, California, and London, he and his financial advisor determined that he was over-insured. He also wanted to be able to freely visit his children and his 11 grandchildren, help fund one of his daughter’s start-up medical supply businesses and begin a non-profit foundation to help paralyzed war veterans.
With no surrender or cash value and a premium obligation of close to $100,000 per year, his advisor called us at The Lifeline Program® to discuss the advantages of a life settlement and to get a read on the cash amount we might be able to find inside his insurance policy.
When we calculated that he could expect $375,000 in addition to a savings of over $98,000 per year in premium payments, he and his financial advisor decided that a life settlement would be to the insured’s advantage, and—since we fund all of own settlements—we were able to mail his check to him, and immediately took over his premium payments. He has capitalized on new investment opportunities through his advisor and now visits each of his children’s families several times a year, and his daughter’s new enterprise, which he helped get off the ground, is beginning to thrive.
**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®.