Client situation:
- 78 year-old female
- $1,000,000 15-year level Term Policy; two years left for conversion option to Universal Life Policy
- No Cash Surrender Value (term insurance)
- Upcoming Annual Premium $10,000
- Insurance no longer needed for debt coverge (mortgage). Client (insured) desires to reallocate funds from premims for unnecessary policy
The Settlement Process:
- Client case file compiled: in-force illustration for post-conversion Universal Life Policy
- Offers from Funder's: $190,000 to $220,000
- Subsequent negotiations result in final high offer of $250,000 (client accepts offer)
- Transfer of ownership contracts processed/executed
- Settlement funds are wired to the policy seller (net of disclosed compensation fees)
- Upon expiration of rescission period (normall 3 - 15 days) compensation is wired to the agent/broker
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