| Type of Policy/ Death Benefit |
Cash Surrender Value |
Life Settlement Offer |
% increase over CSV |
Reason(s) why client chose to pursue a LS |
Term Life
$6,000,000 |
$0 |
$260,000 |
NA |
Key man policy was no longer necessary and client monetized asset with no ‘value’ and used proceeds to buy new $2mm policy at lower rates |
Universal Life
$1,000,000 |
$20,000 |
$105,000 |
425% |
Client had no need for policy b/c of updated estate planning |
Universal Life
$5,000,000 |
$0 |
$975,000 |
NA |
Premium financed policy with no CSV b/c it was only 2 years old |
Universal Life
$400,000 |
$42,000 |
$100,000 |
238% |
Surplus policy |
Term Life
$3,000,000 Total |
$0 |
$275,000 |
NA |
Term policy conversion period was about to expire and client needed $ more than coverage |
Universal Life
$500,000 |
$65,000 |
$135,000 |
107% |
Client felt policy wasn’t suitable anymore |
Survivorship UL
$400,000 |
$35,000 |
$135,000 |
285% |
Client needed capital for long term care planning/needs |
Survivorship UL
$13,200,000 |
$893,000 |
$3,900,000 |
337% |
Premiums were too expensive for client to continue |
Universal Life
$4,950,000 |
$0 |
$810,000 |
NA |
Premium financed policy with no CSV b/c it was only 2 years old |
Term Life
$2,437,500 |
$0 |
$293,000 |
NA |
Key man policy was no longer necessary and client monetized asset with no ‘value’ and used proceeds to keep business alive |
Universal Life
$3,000,000 |
$509,000 |
$1,400,000 |
175% |
Inefficient policy that client had no need for and beneficiaries wanted the $’s today |
Universal Life
$1,619,000 |
$52,600 |
$222,600 |
323% |
Variable policy that was relying on unachievable investment returns to keep it alive. Client took proceeds and used it for a single premium UL |
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What is a Life Settlement? 
