Case Studies

Life settlements offer policy owners added value for an outdated policy, value which the policy owner would not have realized if the policy was lapsed or surrendered. Not all policies have economic value as a life settlement, but may in the future, which is why Milestone provides in-depth analysis of life insurance policies, to help you better understand if and when the sale of a policy should be considered.

Case Study 1

Client: 76-year-old male with minor health problems and a $1,700,000 Universal Life Policy that was about to lapse. The owner could not afford to keep the policy due to the cost of the premiums. The cash-surrender-value was only $40,000 and the seller was willing to accept this value from his life insurance carrier.

Result: The policy owner received $275,000 in cash, and sold his policy.

Case Study 2

Client: 83-year-old female with a $325,000 Term Policy. The conversion premium to a Universal Life product was $28,000. This was the smaller of two policies owned by the insured and she no longer needed the policy.

Result: The policy owner accepted an offer of $80,000.00 for the term product. The agent converted the policy for additional commission income to him.

Case Study 3

Client: 78-year-old man with a $250,000 Universal Life Policy. He was in danger of losing his home due to mounting bills and unpaid loans. He also had health problems that were not covered by Medicare. He had very little cash-surrender-value available and was willing to surrender the policy to the life insurance carrier for $1,500.

Result: The policy owner received a $70,000 cash settlement, which helped him pay off some troubling debt and keep his home.