What are Life Settlements?
Am I eligible?
What Options Do I Have?
Is It Right For Me?
Why Should I Consider It?
How Much Can I Make?
Are There Tax Issues?
What Is The Process?
What Should I Prepare?
What Should I Look For?
How Do I Start?
Where Can I Learn More?
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Life Settlement Funds
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Examples of how a Life Settlement can help you
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Tuesday January 09, 2007 12:00AM | Click here to visit original article.
Here are some real-life examples of how a Life Settlement can help you:
- A 74-year-old retiree has a term life insurance policy he has had for 20 years which is nearing the end of its term. Because the premiums will substantially increase if he renews the life insurance policy, he was going to let the policy lapse. Since it is a term policy, it has built no equity or cash surrender value, so he would receive nothing upon surrender. By selling the life insurance policy to a provider he not only eliminates his high monthly premium, but he also enjoys a windfall of cash.
- A 64-year-old woman is carrying multiple life insurance policies for estate tax planning reasons. Since she took out the policies, her estate planning needs have changed and her financial advisor has suggested that she drop one of the policies to free up her monthly cash flow and reduce her expenditures. By selling the policy which is now obsolete, she is able to adapt to her changing estate planning needs by rolling her life settlement into a long-term care policy or annuity.
- A 58-year-old woman sold her business 5 years ago. As part of the purchase agreement, she remained a consultant to the new owners for 5 years. During this ''earn-out period'', they purchased a $1,000,000 Key-Man policy on her life. As part of her consulting contract, the company assigns this policy to her at the end of the contract. Since she already has adequate life insurance coverage, she can sell the policy to a provider and invest the proceeds from her life settlement.
- A 69-year-old man and his 65-year-old wife own a joint survivor policy. They would like to make a substantial donation to their favorite charity, but do not want to affect their retirement income. By selling this life insurance policy to a provider, they have the pleasure of seeing the good work that their gift has made possible.
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68 Year Old Male
$600,000 Universal Life
$29,845 Surrender Value
Paid: $94,000
66 Year Old Male
$1,500,000 Universal Life
$76,537 Surrender Value
Paid: $265,000
80 Year Old Female
$400,000 Universal Life
$0 Surrender Value
Paid: $68,000
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11 March 2010, 7:05 am
Life Partners Engages Ernst & Young LLP as Its Auditor - Insurance News Net (press release)
10 March 2010, 11:56 pm
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10 March 2010, 8:14 pm
Caldwell Reorganizes Affiliates To Launch Caldwell Life Strategies - PR-USA.net (press release)
10 March 2010, 12:17 pm
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10 March 2010, 2:19 am
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9 March 2010, 1:18 pm
Commissioner Fred Joseph of the North American Securities Administration ... - Business Wire (press release)
9 March 2010, 8:03 am
Imperial Finance & Trading Names Richard (Rory) O'Connell as Chief Credit Officer - Business Wire (press release)
9 March 2010, 6:05 am
Caldwell Reorganizes Affiliates To Launch Caldwell Life Strategies - PR Newswire (press release)
8 March 2010, 8:12 am
When Life Insurance Is More Valuable as Cash - New York Times
3 March 2010, 2:44 pm
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