The first three cases feature examples of senior settlements in which the need for life insurance was gone and the policy was soon to be lapsed or surrendered.  Other reasons that could trigger this are a reduction in estate size, a sale of a business, divorce or health problems. 

In the second series of three examples the policyowners had policies that they still needed and wanted to keep, but because of high premiums caused by interest rate underperformance their policies had become unaffordable.

This involved an $8.0 million universal policy on a 76 year old man who had originally purchased the insurance to reduce the cost of his estate taxes.   The cash value was $795 thousand and the client wanted to sell   the policy because he could invest the funds to make a better return and he no longer wanted his children to receive this life insurance.  Following case submission, an offer of $2.3 million was tendered and accepted.  The client   received $1.5 million more than if he would have surrendered his policy as he had planned.

This case involved a $4.0 million keyperson policy on an executive owned by the corporation.  The policy had a cash value of $90 thousand.   The key executive had retired and had no need for the insurance, nor the ability to pay for it.  Following case submission, an offer of $425 thousand was tendered and accepted.  The extra $335 thousand was given to the executive as an addition to his retirement package.

This situation had a $3.0 million term life insurance policy on a 71 year old man taken out in conjunction with a bank loan.  The decision had already been made to let this policy lapse since the bank loan had been paid off.   Keep in mind, this was a term policy, with no cash value.  This policy was sold for $400,000 which the company received and it went directly to their bottom line.   Had the policy lapsed no monies would have been received.

This next case involved an 82 year old female with a $5.0 million policy that had $250 thousand of cash value.  It was performing poorly due to lower interest rates than originally projected.  This policy was sold for $700 thousand.  The client placed the $700 thousand in a new policy with a table 8 rating and as a result has considerably lowered her outlay from before.

This involved a $3.5 million policy with $200 thousand of cash value.  The life insurance was on both the husband and wife and was still needed to reduce the cost of estate taxes.  This policy sold for $1.2 million.   They put this $1.2 million into a $4.5 million policy on the wife.  This policy was $1.0 million more than the previous one with new guaranteed death benefits and much more cost-efficient premiums

The last case had a total of six policies with a face amount of $12.0 million.  They were owned by an 83 year old female to reduce the cost of her estate taxes and had a total of $2.4 million in cash value.  The policies were sold for $4.3 million, $1.9 million more than her cash value.  She put the $4.3 million in a new $12.0 million policy with new guaranteed death benefits and a 31% reduction in premium outlay.