Life Settlement Cases With Interesting Outcomes

Male, 67, with a $2 million term policy from a top carrier and a life expectancy of 196 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.

Male, 77, in great health with a $1 million guaranteed UL policy from a top carrier.

The seller received $106,783. What makes this case interesting is that we were able to get an offer based just on the guaranteed premiums to age 105. Because he was in such good health, medical records weren't needed. Guaranteed UL and guaranteed survivorship UL contracts on healthy people in their mid 70s and up can have surprising value in the life settlement market.

Female, 91, with a $2 million UL policy from a top carrier 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. 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. They needed money for their mother's care, back bills, etc. 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. Although it seemed to make even more sense to hold on to the coverage, it was simply unaffordable. The money from the policy sale was a huge source of relief for the family.

It's important to stay knowledgeable about your clients' situations and make sure that they are aware of the life settlement option.

You don't want to be on the receiving end of the all too frequent phone call, "My policy lapsed — is it too late to look into a life settlement?" As opportunities come up, be sure to explore the potential of a settlement.

As we always say, "It can't hurt to try — it can only hurt not to!"

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Robin S. Weinberger, CLU, ChFC, CLTC, is the director of national accounts for Life Insurance Settlements Inc. She has been a general agent and director of national accounts for Connecticut Mutual and vice president of marketing for Sun Life of Canada. She can be reached at [email protected] or (617) 451-3343.

Peter N. Katz, JD, CLU, ChFC, RICP, is a life settlement broker and co-director of national accounts with Life Insurance Settlements Inc. He is also a consultant specializing in life insurance advanced sales illustrations, and he has served as an advanced markets attorney and in product development. He can be reached at [email protected] or (860) 937-2936.