EXAMPLES OF "LIFE SETTLEMENTS"

1. A man age 68 received a Life Settlement of $120,000 on a $750,000 term policy.

This term insurance policy had no cash value. Instead of lapsing the policy and receiving nothing, the policy owner received a Life Settlement equal to 16% of the face amount of insurance.

2. A man age 69 received a Life Settlement of $400,000 on a $3,000,000 term policy.

This term insurance policy had no cash value. Instead of lapsing the policy and receiving nothing, the policy owner received a Life Settlement equal to 13% of the face amount of insurance.

3. A man age 67 received a Life Settlement of $52,500 on a $500,000 universal life policy with $36,000 of cash value, increasing his return by $16,500.

Instead of surrendering this policy and receiving its cash value of $36,000 from the life insurance company, the policy owner received a Life Settlement of $52,500.
The increased payment of $16,500 was equal to 4% of the net amount of insurance.

4. A man age 65 received a Life Settlement of $525,000 on a $4,000,000 universal life policy with $90,000 of cash value, increasing his return by $435,000.

Instead of surrendering this policy and receiving its cash value of $90,000 from the life insurance company, the policy owner received a Life Settlement of $525,000. The increased payment of $435,000 was equal to 13% of the net amount of insurance.

5. A man age 82 received a Life Settlement of $1,200,000 on a $10,000,000 universal life policy with no cash value, increasing his return by $1,200,000.

This cash value insurance policy had no cash value. Instead of lapsing the policy and receiving nothing, the policy owner received a Life Settlement equal to 12% of the face amount of insurance. More importantly, the policy owner received $1,200,000 by taking a Life Settlement, instead of lapsing the policy and receiving no cash.