Life Settlement Cases
That benefit all…

Life Insurance settlements should be viewed as an alternative to a lapse or surrender of a life insurance policy. For example, a settlement could open up the possibility for much needed Long-Term Care. Frequently, an infusion of cash makes a significant difference not only to the policy owner, but also, to family and loved ones at a critical time in their life. The following are several cases that illustrate how a Life Insurance Settlement helped seniors through a stressful time.
⦁ Female, 91, with a $2,000,000 Jackson National UL policy and a life expectancy of 38 months. The insured had already tried to sell this policy about a year and a half prior. At that time, her life expectancy was 77 months, and the highest offer was $250,000. The family decided to keep the coverage and try to continue paying the premiums. But a year and a half later, the family determined that, although their mother's health had deteriorated, they could no longer afford the premium payments and they needed money for their mother's care, back bills, and unexpected expenses. This time the highest offer was $795,000. What makes this case interesting is that, in the interim, the insured's health had gotten much worse and, although it seemed to make even more sense to hold on to the coverage, it was simply unaffordable. The money was a huge source of relief to the family.

⦁ Male, 88 and female, 87 with a $1,000,000 Pacific Life Survivorship policy could no longer afford insurance coverage that was no longer needed. Their plan was to surrender the policy for a small cash amount. We were able to secure them a settlement 3 times more than their surrender amount and get our client a life settlement of $150,000.

⦁ Male, 90, with a $990,000 John Hancock Guaranteed UL policy and a life expectancy of 65 months. On 8/29/2019, the initial offer was $325,000. It was bid up several times (three funds or buyers were interested) and on 10/25/19, the final offer received was $415,000. On 10/29/19, the client declined the offer and decided to keep the policy as he wanted a higher amount ($10,000 more!). On 1/6/2020 we got a call from the broker that the client changed his mind and wanted to accept the offer. We went back to the fund with the highest offer and, unfortunately, we were told that the offer was no longer available. We then went back to all the funds and this time, the best offer that we could get was $350,000. On 1/23/20, the client again declined the offer and decided to keep the policy. What makes this case interesting is that timing is everything! Funds available for investment don't remain idle and move on to other policies.

⦁ Male, 69, with a $2,000,000 Transamerica term policy and a life expectancy of 190 months. The policy owner received $31,147. What makes this case interesting is that although $31,147 is only 1.5% of the face amount, the client was thrilled to get the cash as opposed to lapsing the policy and getting zero!

⦁ Female, 75, in great health with a $1,000,000 John Hancock GUL policy. Seller received $106,783. What makes this case interesting is that we were able to get an offer just based on the guaranteed premiums to age 105. Because she was in such good health, medical records weren't needed! Guaranteed UL and Guaranteed Survivorship UL contracts on healthy people in their mid-70's and up can have surprising value in the life settlement market.

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