Client Situation:
- 75 year-old male
- $5,000,000 Universal Life Policy purchased 5 years ago
- Cash Surrender Value of $125,000
- Upcomming Annual Premium $150,000
- Change in financial situation: Estate tax changes reduced need for coverage. Insured does not want to pay escalating premium any longer
The Settlement Process:
- Client case file compiled: HIPAA, medicals/APS, in-force illustration, LE report, application and sent to multiple Institutional Investors (Funders) for evaluation and pricing offers
- Initial offers received ranging from $900,000 to $950,000
- Subsequent negotiations results in a final high offer of $1,150,000*
- Client reviews highest offer and decides to accept offer (*less intermediary fees)
- Transfer of ownership contracts are then processed and executed; coverage is verified at the carrier; escrow; policy ownership is transferred and recorded at the insurance carrier
- Settlement funds are wired to the policy seller (less agreed upon intermediary fees). Client uses proceeds for retirement funding, smaller insurance policy
- Upon the expiration of statutory contract rescission periods (3-15 days), compensation is wired to the intermediary
0 comments:
Post a Comment