Spiga

Term Conversion

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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