Case Studies
See how others make the most of situations like yours

Stories of smart decisions made at the right time, with real financial impact.

Case Study:

Power of Attorney Enables Policy Sale Amid Health Challenges

Client: Male, 68, had been suffering from Alzheimer's disease for about 7 years. When the policy was issued at age 49, however, he was Preferred Plus.

Policy: $1 million, 20-year term, coming to the end of the conversion period. It was convertible to an Indexed Universal Life policy at Preferred Plus rates with a premium of 4% of the face amount.

Problem: The client was no longer competent and was not even aware of his policy, let alone able to make any decisions about it.

Solution: Prior to the deterioration of his mental health, the insured had granted power of attorney to his wife, who was also his primary caregiver. So before the end of the conversion period, we were able to shop the policy and let her know of its potential value.

Life settlement offer of
$
Evaluated
different offers

Big Win: We received 14 offers, topping out at $160,000 to the policy owner. The proceeds made a meaningful difference as the insured needed full-time supervision and care and they were going through a lot of money. Had their broker not made the insured's wife aware of a Life Settlement, they might have walked away with nothing! But this way, they were able to make their lives significantly more comfortable.

*source Robin S. Weinberger, CLU, ChFC, CLTC & Peter N. Katz, JD, CLU, ChFC, RICP®

Case Study:

Offers Can Change Quickly

Client: Male, age 91

Policy: $982,000 Guaranteed Universal Life with no cash surrender value.

Problem: Thinking it was worth more, the client declined an offer of $414,000 for this policy. He wanted $425,000! Three months later, he changed his mind, but the offer was no longer available. After re-shopping the policy, the best offer was now only $350,000.

Solution: The client had become really pressed for cash and so he had no choice but to settle for $75,000 less than the earlier offer. Timing is everything! Funds available for investment don’t remain idle and move on to other policies or investment opportunities. Economic changes and projections also have an impact on how much investors are willing to pay. All we can promise is to get the highest offer at the time that someone wants to sell.

Client accepted
$
offer
$
MORE than the cash surrender value!

Big Win: Although the win could have been even bigger, the policy owner still got $350,000 more than the cash surrender value of zero!

*source Robin S. Weinberger, CLU, ChFC, CLTC & Peter N. Katz, JD, CLU, ChFC, RICP®

 

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Life Insurance Policy Can be Solid for Cash

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You are at least 65

Your Health Status Has Changed

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Case Study:

Real Value from a Life Settlement

Client: Male, 95, in great health, with several family members who lived past age 100.

Policies: Three Guaranteed Premium Universal Life policies, totaling $6,500,000, with premiums payable to age 100, but the death benefit payable to age 120. The cash surrender value was only $25,000. The premiums were $474,000, 7.3% of the death benefit.

Problem: The client sold his business and could no longer afford the premiums. The business paid for the policies even though they were personally owned. In addition, even at 95, the insured wanted to start a new business with his nephew and needed substantial cash to get it going.

Solution: After 11 offers, we obtained a final net offer to the client of $3,130,000.

Life settlement payout of
$
Client eliminated
$
in future premiums

Big Win: In addition to the settlement cash, this client will save $474,000 each year for the next 5 years, providing the funds needed to buy and develop the real estate for his new firm.

*source Robin S. Weinberger, CLU, ChFC, CLTC & Peter N. Katz, JD, CLU, ChFC, RICP®

Case Study:

Life Insurance Settlement Offer for $350,000

Client: Female, age 87

Policy: $2,000,000 Universal Life, with a cash surrender value of $87,271

Problem: The client could no longer afford the premiums. Based on the original illustration from 14 years ago, she expected to cash out the policy for $375,000 and use the money to supplement her retirement income. Her husband predeceased her, so she no longer needed the coverage, and her expenses had increased over the years.

Solution: We were able to get her a Life Settlement offer of $350,000, nearly what she expected, and $262,729 more than the cash surrender value!

Life settlement offer of
$
$
MORE than the cash surrender value!

Big Win: The proceeds from the life settlement were used to enhance her retirement income, giving her peace of mind for her future and making up for the disappointment of the low cash surrender value.

*source Robin S. Weinberger, CLU, ChFC, CLTC & Peter N. Katz, JD, CLU, ChFC, RICP®

 

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Your Policy Is $100,000+

You are at least 65

Your Health Status Has Changed

See If You Qualify To
Sell Your Life Insurance Policy for Cash

Discover The True Value Of Your Life Insurance Policy Today and Work with the most experienced life settlement company in the industry

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Case Study:

Big Win & Additional Sale

Client: Male, Age 75

Policy: $5,000,000 term policy, coming to the end of the conversion period

Problem: Client wanted to convert and keep some of the coverage, but couldn't afford to convert and keep all of it

Solution: Client converted and kept $1,000,000 of coverage and then converted and sold the remaining $4,000,000 policy for $235,000

Converted & sold remaining policy for
$
Distributed To Heirs Upon Death
$
of coverage

Big Win: The client used the money from the life settlement to pay for the first 3+ years of coverage on the policy that he kept!

*source Robin S. Weinberger, CLU, ChFC, CLTC & Peter N. Katz, JD, CLU, ChFC, RICP®

Case Study:

You Can Get An Offer On a Healthy Insured!

Client: Female, Age 73

Policy: $694,000 Guaranteed Universal Life with $48,000 of cash surrender value

Problem: The insured's husband, her beneficiary, passed away and she no longer needed the coverage. When she called her agent to cash in the policy, he was hesitant to suggest a life settlement because she was so healthy

Solution: Because her policy was a Guaranteed Universal Life contract, we were able to get her an offer of $110,000! And what makes this even better is that we obtained the offer in just 3 weeks!

Converted & sold remaining policy for
$
$
More than the cash surrender value

Big Win: The insured loves to travel and was excited to know that her travel budget had just increased dramatically. After so many years of paying premiums, she was delighted to get back almost all of the money she had put in

*source Robin S. Weinberger, CLU, ChFC, CLTC & Peter N. Katz, JD, CLU, ChFC, RICP®

Case Study:

Accelerated Death Benefit Nets Thousands More

Client: Male, Age 70 (with stage 4 metastasized brain cancer; his doctor thought his life expectancy was less than 1 year)

Policy: $250,000 term policy, coming to the end of the conversion period

Problem: Client could not afford to convert the whole policy and was contemplating converting a portion and selling the rest. But he was struggling to even keep that as he was short of cash due to his medical expenses and completely overwhelmed. We told the advisor of several options:

  • Convert and keep $100,000 and sell the other $150,000 to help pay for the coverage he wanted to keep, as well as to help with his expenses.
  • Sell the whole $250,000.
  • Apply for an Accelerated Death Benefit - an option the advisor was completely unfamiliar with.  

Solution: ACCELERATED DEATH BENEFIT, also known as a terminal illness rider, is a life insurance policy add-on that allows you to access your policy's death benefit before you die if you're diagnosed with a qualifying terminal illness – typically with a life expectancy of a year or less. The money received via the rider is deducted from the death benefit and is received tax free. Each company’s rider is a little different, but a typical rider offers a percentage of the face amount subject to a maximum dollar amount.

The insurer agreed with the client’s doctor’s assessment and the insured received $240,000 and his heirs will get the balance of $10,000 upon his death.

Due to the cost of conversion and the life settlement companies’ longer life expectancy analysis, he would have received only about $125,000 if the policy was sold.

Converted & sold remaining policy for
$
Distributed to Heirs
$
of coverage

Big Win: The insured received almost the entire death benefit while alive and was able to take care of his bills, his family, etc., and live out his life in peace. “Knowledge is power” and in this case, was worth a substantial amount of money.

As life settlement brokers, we received no financial compensation for our advice; however, the satisfaction we felt knowing how we helped this client made this one of our most gratifying cases.

*source Robin S. Weinberger, CLU, ChFC, CLTC & Peter N. Katz, JD, CLU, ChFC, RICP®

Case Study:

You Can Get An Offer On a Healthy Insured!

Client: Female, Age 73

Policy: $694,000 Guaranteed Universal Life with $48,000 of cash surrender value

Problem: The insured's husband, her beneficiary, passed away and she no longer needed the coverage. When she called her agent to cash in the policy, he was hesitant to suggest a life settlement because she was so healthy

Solution: Because her policy was a Guaranteed Universal Life contract, we were able to get her an offer of $110,000! And what makes this even better is that we obtained the offer in just 3 weeks!

Converted & sold remaining policy for
$
$
More than the cash surrender value

Big Win: The insured loves to travel and was excited to know that her travel budget had just increased dramatically. After so many years of paying premiums, she was delighted to get back almost all of the money she had put in

*source Robin S. Weinberger, CLU, ChFC, CLTC & Peter N. Katz, JD, CLU, ChFC, RICP®