THE SITUATION
Emily and her husband Charles (now deceased) purchased a $4 million universal life insurance policy in 1995 for estate planning purposes. In order for Emily to maintain the policy through her life expectancy, her planned premium would increase from $44,000 to $106,000. Emily couldn’t afford the increased premiums and no longer needed the policy for estate planning purposes.
Life Settlement News & Case Studies
Life Settlement Success Story: Long Term Care Funding
THE SITUATION
Maria Smith1 is a 91-year-old widow who is extremely concerned about the high costs of impending long term care expenses. Her ValMark Advisor suggested a life settlement as a solution for providing immediate funds to help plan for future costs of long term care.
Life Settlement Success Story: Personal Needs
THE SITUATION
James Green*, a 67-year-old business owner, was diagnosed with colon cancer. His business partner was his sister-in-law and there had been a contentious historical relationship. The need for cash outweighed the need for the future death benefit. James owned a $250,000 universal life policy that was originally obtained for income protection, which he no longer needed since he had retired from the business. The policy had a small loan on it and James no longer wanted to pay the premium and interest due on the loan. A life settlement to create additional capital to pay the premiums on a larger policy was recommended.
Life Settlement Success Story: Family Emergency
THE SITUATION
Mark Jones*, a 63-year-old corporate executive, was diagnosed with cancer. Fortunately, he and his wife, Susan, had accumulated a comfortable net worth so that Mark could take early retirement.
Life Settlement Success Story: Business Changes
THE SITUATION
Ted Bailey*, a 59-year-old entrepreneur, had fallen on hard times during the economic crisis. As a result, he was forced to file bankruptcy to discharge business loans for which he was personally responsible. Ted had a $1 million term policy which needed to be converted within the next several months. However, he could not afford to pay the premium for a permanent policy.
Life Settlement Success Story: Retirement Income
THE SITUATION
Joe Campbell*, a 74-year-old physician, lost a substantial portion of the wealth he had accumulated over his career and was unable to maintain the lifestyle that he and his wife had become accustomed to. Dr. Campbell had two term insurance policies with a total death benefit of $5 million.
Life Settlement Success Story: Trust Needs
THE SITUATION
Mary Snow*, an 89-year-old widow, has a sizable net worth, but it has diminished over the last several years. After meeting with her Financial Advisor, they determined that she needed additional liquidity to pay the premiums on her other policies held by the family trust. Mary wanted to assure that the inheritance planned for her family and charities would remain intact.