Tag Archives: Life Settlement Case Study

CASE STUDY

The Background A 90 year old female had a $3,000,000 insurance policy Business Tagline with Mass Mutual. The annual insurance premiums were$96,000. The cash surrender value was only $80,000. The Problem or Challenge The insured had too much life insurance for her needs. She also had a $5,000,000 policy for a combined $8,000,000 in coverage. The […]

Life Settlement: 79-Year Old Male and 81-Year Old Female

A university had a portfolio of donated life insurance policies. Two of the policies in their portfolio were a $1,000,000 life insurance policy from Prudential insuring a 79 year old male. The annual premiums were $60,000 with a cash surrender value of only $8,036. The second a $500,000 life insurance policy from West Coast Life insuring an 81 year old female. The annual premiums were $51,000 with no cash surrender value.

Life Settlement: 81-Year Old Male

An 81 year old male had a total of $15,000,000 in life in-surance from New York Life. The $10,000,000 policy had an annual premium payment of $583,000. The $5,000,000 face amount had an annual premium payment of $424,000. The combined annual premiums were $1,007,000. The combined cash surrender value on the 2 policies was only $347,000.