One of the policies Mary owned was a $6 million Universal Life Policy with a cash surrender value of approximately $93,000. Her life expectancy is estimated at between 43 and 67 months.
ValMark worked with multiple providers to negotiate a settlement resulting in a total gross offer of $1,565,000 (before commissions and expenses) – 26% of the policy’s death benefit and 16X the cash surrender value.
POLICY TYLE: UL
DEATH BENEFIT: $6,000,000
CASH SURRENDER VALUE: $93,000
LIFE EXPECTANCY: 43 – 67 Months
LIFE SETTLEMENT GROSS OFFER: $1,565,000 (26% of DB | 16X CSV)
According to a recent GAO study, Life Settlements deliver more than 4X the surrender value to seniors. As the troubled U.S. economy has improved, so has the Life Settlement market. Providers have more institutional money available to bid on policies than they have had in the last several years. Consider a life settlement as an alternative to lapsing or surrendering your policy.