Unlocking Value from Life Settlements: Real-World Case Studies
10/10/2023 · 2 min read
As we all know, the life insurance landscape is vast and complex, and every policyholder's situation is unique. For clients who no longer need or can no longer afford their life insurance policies, life settlements offer an alternative way to extract value from these contracts. Today, we're excited to share with you some real-world examples that demonstrate the flexibility and financial benefits derived from this innovative alternative to surrendering or lapsing a life policy.
Case Example #1: 250k United of Omaha Term Policy
Demographics: 69-year-old male with a history of prostate cancer, now in remission.
Challenge: This case was declined by nearly all of the secondary market life settlement buyers due to the client's medical history.
Outcome: The term policy was nearing its conversion deadline. Opting not to continue with more expensive premiums, the owner was going to let it lapse. However, BackNine help him get qualified for Life Settlement and receive a lump sum payment.
Agent Benefit: The agent received commissions for both life settlement and policy conversion.
Case Example #2: 250k Protective Term Policy
Demographics: 74-year-old male in relatively good health.
Challenge: The majority of secondary market buyers declined this case due to the client's good health and a smaller face amount.
Outcome: Again, BackNine came to the rescue. The insured received a lump sum payment.
Agent Benefit: The agent earned commissions for life settlement and policy conversion.
Case Example #3: 800k Trans Term Conversion
Demographics: 72-year-old in relatively good health.
Challenge: The case was almost universally declined due to the client's ‘relatively good health.’
Outcome: BackNine offered a solution. The insured received a paid-up death benefit, allowing them to keep some coverage without any further premium payments.
Agent Benefit: The agent secured commissions for life settlement and policy conversion.
We hope these case studies have illuminated the multiple avenues through which settlement services from BackNine Insurance can benefit both policyholders and agents. This tool is not only a lifeline for policyholders who find themselves in challenging situations, but it's also a revenue generator for agents. As you continue to explore the varied needs of your clients, we're here to support you in offering them flexible, financially advantageous options.
If you would like more information on the life settlement facilities provided here at BackNine Insurance, please email Paul Pichie at [email protected] or call (818) 221-0010. Applications can be downloaded in your BOSS account under the Forms & Applications section.