Bill, a trust officer, identified a policy to be significantly underfunded and the grantor had not paid a premium since 2005. The projected annual premium to mature the policy was $84,020 and with no further funding the policy was projected to lapse in 6 months. The grantor did not want to contribute any more money to the policy and there was only $10,000 of cash surrender value. To thoroughly evaluate all remediation options, Bill requested a preliminary life settlement evaluation from EnTrust Settlements.
The evaluation showed potential to have significant value above the cash surrender value on the secondary market. Bill disclosed this option with the grantor, who then wanted to proceed with the life settlement option. EnTrust Settlements received an initial offer of $250,000. After establishing a competitive bidding environment, the last buyer standing was able to offer $360,000 net of fees. Bill accepted this offer and the grantor could not thank the bank enough for disclosing this option to his family. The life settlement proceeds are now managed by the trust.
Anna's client took out a life insurance policy to plan for estate taxes over ten years ago. The family's business took a turn for the worse and they had not paid a premium since 2010. The policy was on the verg......
A life settlement is a valuable financial option for policy owners who no longer want, need, or can afford their life insurance policy. Instead of lapsing or surrendering a policy back to the insurance company, qualified policies can be sold in the secondary market for a price great than the cash surrender value but less than the death benefit.
Contact us to determine if the life settlement option makes sense for you.