APRIL 2011 

‘RAP’ (Retain a Portion) Life Settlement Solution: 74-year-old male 

  • Life Insurance Policy Face Value: $3M
  • Life Insurance Annual Premium: $79,452
  • RAP Life Settlement Offer: $25,000 + a retained death benefit of $180,000
  • Life Insurance Policy Type: Universal Life Insurance
  • Life Insurance Cash Value: $32,152

 

  • Life Settlement Solution: This client was facing financial challenges and was unable to pay his upcoming life insurance premium. His agent opted to explore the market value of his life insurance policy. Because of his age and relatively good health, he could not qualify for a traditional cash life settlement. His only other options appeared to be either simply accepting the policy’s cash value or allowing the policy to lapse and neither of those appealed to him at all.

 

Only unconventional alternatives would avoid the limited options available. The particulars of his case were forwarded to 20 funders. At the ending of the day there were actually several life settlement solutions. His life insurance appraisal consisted of a cash payment element and a paid up life insurance policy. He ultimately accepted a $25,000 cash payment and $180,000 of paid up life insurance coverage for which he would never have to make another payment

‘RAP’ (Retain a Portion) Case Study #2: 78-year-old male 

  • Life Insurance Policy Face Value: $1M
  • Ife Insurance Annual Premium: $21,796
  • RAP Life Settlement Offer: $50,000 + a retained death benefit of $400,000
  • Policy Type: Universal Life Insurance
  • Life Insurance Cash Value: $174,188

 

  • Life Settlement Solutions: This client could no longer afford his premium payments, but it was extremely important to him that he be able to maintain some life insurance for his beneficiary. He was not necessarily interested in transacting a life settlement; he wanted to see if there might be a life settlement solution which would allow him to reduce his coverage or obtain a paid up life insurance policy with no premiums. Just the specifics of this case were shipped to 20 funders and they worked aggressively to find the client a life insurance appraisal value comprised of a lump sum of cash out and paid up life insurance coverage going forward.

 

The life settlement appraisals varied. The client ultimately maintained a $400,000 death benefit to his beneficiary and no longer was required to make premium payments. And although he was not specifically looking for a cash settlement, the client was thrilled that the deal also included a $50,000 cash payment to him. 

Please feel free to contact us with specific questions pertaining to your individual circumstances and questions regarding a Life Settlement Appraisal. You may reach us at 1-800 RAP POLICY or 1-800-727-7654.