CASE STUDIES

Case Study #1:

Female, 79 – who was recently widowed owned a universal life policy with a face amount of $100,000. Since interest rates had declined the entire time she owned the policy, the policy only had $11,000 of cash surrender value. Her kids were all grown and very successful. She did not need the insurance anymore and called us PLUS Financial Network to cash surrender the policy. PLUS Financial referred her to Professional Life Settlements to see if we could beat the $11,000 cash surrender value. After reviewing her health history and taking into account the annual premium, we were able to find an offer of $30,000. She used the money to fix her back deck and add a gazebo so she could sit outside during the Michigan summer.

Case Study #2:

Male,65 – Owned a $1,500,000 term policy that he had taken out when he was 55. The policy still had 5 years left but the term conversion period was ending at age 65. At age 64 he was diagnosed with stage 4 cancer with a 4 year life expectancy. With medical bills piling up, and realizing there was some traveling he wanted to do while he still could, he decided to see what he could get in the life settlement marketplace. After meeting with the family via zoom on multiple occasions, we decided to convert $1,000,000 of the term policy to universal life and keep $500,000 as term insurance for the wife. We sold the converted $1,000,000 policy for $600,000.

Case Study #3:

Male, 77 and female, 75 – owned a 2nd to die policy for $3,000,000 with a cash surrender value of $150,000. They had taken out the policy 15 years ago after selling their company. They didn’t need the coverage anymore so they were going to cash it in. Their financial advisor told them to give Professional Life Settlements a call to see if there was value in the secondary marketplace. After analyzing the annual cost and life expectancy, PLSP felt they could get $225,000 to $255,000. The clients agreed to allow PLSP to take it to auction and it was sold for $240,000; $90,000 more than the surrender value.

Case Study #4:

Male, 82 and Female, 80 – Owned a $4,500,000 2nd to die policy with very little cash surrender value. They initially went directly to Company C and were offered $450,000 for the policy. The client’s asked their financial advisor if he felt it was a good offer. The advisor called PLSP and our initial analysis came back with an estimated value of $850,000 to $1,000,000. When Company C realized they had competition, they upped the offer to $490,000 but only gave the insured’s 24 hours to decide. The advisor convinced them it was a mistake to accept the $490,000. After PLSP took the case to auction, we were able to secure a bid of $990,000.

Case Study #5:

Male, 79 – Owns a $1,000,000 15 year term policy that he purchased when he was 65 and was issued preferred plus non-smoker and convertible until age 80. At age 75, he was diagnosed with Alzheimer’s Disease. At age 79 he is put into a nursing home. The family asked us for term conversion illustrations as the policy was about to end. The annual premium for conversion is $69,000. The family cannot afford the new premium. PLSP ordered medical records and ran life expectancy calculations and took the conversion policy to the market and sold it for $200,000.

The family was overjoyed with the result.