Gender: Male

Age: 69 years

Policy Size: $500,000

Net Settlement Paid: $210,000 (42% of death benefit)

Synopsis of Case:

A 69-year-old male owned a $500,000 universal life policy with a cash surrender value of $10,335. He could no longer afford the premiums and wanted to maximize the value of the policy to re-allocate to other needs. He received a settlement offer of $210,000, equal to 42% of the policy’s face amount.

 

Source: Life Insurance Settlement Association. Call 407.894.3797 for more information.

Gender: Female

Age: 84 years

Policy Size: $500,000

Net Settlement Paid: $215,000 (43% of death benefit)

Synopsis of case: Policy holder could no longer afford the premiums and opted to sell policy for cash to cover other expenses. The policy holder sold the policy for $215,000 cash (43% of death benefit).

 

Source: Life Insurance Settlement Association. Call 407.894.3797 for more information.

Genger: Male

Age: 64 years

Policy Size: $500,000

Net Settlement Paid: $367,500 (73.50% of death benefit)

Synopsis of case: Insured’s son was policy owner and insured had ALS (a/k/a “Lou Gehrig’s Disease”). Policy holder wanted to use the settlement money to purchase a handicap van and other medical equipment for his father to help make the last months of his life more comfortable. The closing took over two months, but the provider generously advanced some of the settlement funds before changes were recorded at the carrier. The insured passed away five months after the settlement. The son called and reported his father’s passing and expressed appreciation for helping to make his father’s last few months more bearable.

 

Source: Life Insurance Settlement Association. Call 407.894.3797 for more information.

Gender: Male

Age: 76 years

Policy size: $500,000 (universal life policy)

Conversion: $85,000 (9% of death benefit)

Monthly Benefit: $2,500

Benefit Duration: 23 months

Final Expenses Benefit: $5,000

Synopsis of Case: Policy owner living in California was considering lapsing the policy because he could no longer afford the premiums, and his declining health required the family to pay for expensive long-term care services. The policy owner was experiencing declining health and had just completed an extensive, skilled rehabilitation stay of six weeks.

The agent contacted the provider to see if the provider could possibly help the family by converting the policy to a Long-Term Care Benefit Plan. The provider reviewed the case, analyzed the more recent rehab records and within a week determined the policy owner would qualify to enroll in the program. The family accepted the offer, and the policy owner was able to immediately enroll in a Long-Term Care Benefit Plan.

With the Long-Term Care Benefit Plan account in place, the agent was able to assist the family with access to a selection of home care companies from the Trusted Partner Network to ensure the client would received the best possible care, paid tax free on a monthly basis from his account.

 

Source: Q Capital Strategies, LLC, 2013

Gender: Male

Age: 70 years

Policy Size: $400,000 (universal life policy)

Conversion: $82,940 (5% of death benefit)

Monthly Benefit: $4,000

Benefit Duration: 19 months

Final Expenses Benefit: $6,940

Synopsis of Case Study: A policy owner living in Maryland with a $400,000 universal life insurance policy wanted to liquidate his policy to help raise funds to pay for his long-term care needs. The policy holder was already a resident of an assisted living community and was running out of money. The size of the policy and his need to pay for health care services made the policy owner the perfect candidate to convert the policy into a Long Term Care Benefit Plan.

The agent worked with the client’s elder law attorney and assisted living community from the Trusted Partner Network to analyze the health needs of the policy owner, and it was determined that he would be able to receive a significant offer to convert the policy into a monthly Long-Term Care Benefit. Within 30 days the sale and conversion of the policy into a Long-Term Care Benefit Plan was completed and funds issued to the client’s irrevocable, FDIC-insured benefit account that would provide enough tax-free funds to cover his assisted living for at least 19 months and preserve a tax-free funeral benefit for the family.

 

Source: Q. Capital Strategies, LLC, 2013

Gender: Male

Age: 79 years

Policy Size: $300,000

Conversion: $100,040 (15% of death benefit)

Monthly Benefit: $3,200

Benefit Duration: 29 months

Final Expenses Benefit: $5,000

 

Gender: Female

Age: 70

Policy Size: $300,000

Conversion: $50,000 (4% of death benefit)

Monthly Benefit: $700

Benefit Duration: 54 months

Final Expenses Benefit: $5,000

 

Synopsis of Case Study: A husband and wife owned $300,000 term life policies on each other. They were beyond the policy conversion deadline, and the premiums had become to expensive for them to maintain on this non-convertible policy. Thus, the couple decided to stop paying premiums and let the policy lapse. When they started looking into the Long-Term Care Benefit Plan option, the policies were in a grace period. Within days of lapsing, their agent reached out to the provider to see if there was anything that could be done to help the family.

The provider quickly assessed the situation and analyzed the couple’s health care needs. It was immediately determined that they both would be eligible to enroll in the Long-Term Care Benefit Plan to help them pay for home care services for the next three to five years.

Knowing that they would be able to sell the policies to enroll in the program, the premiums were paid, and the policies were restored to in-force status. Once the policies were re-instated, the closing process was completed quickly so that the couple would be able to enroll in the Long-Term Care Benefit Plan, and they were set up with a home care company from the Trusted Partners Network to begin providing them with the healthcare they needed. In less than 45 days, both policies were settled and the couple enrolled in the benefit program that would cover their long-term care needs with monthly, tax-free benefit payments for years–and using policies that were rescued within days of lapsing.

 

Source: Q. Capital Strategies, LLC, 2013