- Male age 82 with chronic emphysema.
- $5,000,000 universal life policy with a cash surrender value of $87,350.
- Annual premium $210,000 (4.2%).
- The policy was sold for $1,983,000.
- Over 22 times the cash surrender value.
- The CFO of a privately held engineering company made an inquiry about a life settlement, with the company’s founding member (the insured) approval.
- The company executives used the proceeds of the life settlement to purchase the retired partner’s stock in the company. The retired partner received significant retirement income and the executives became equity owners in the company. This was truly a WIN-WIN-WIN for all involved in the transaction.
