Individual male case study:
Male 81 years old with stroke survivor.
$1,500,000 universal life contract with a cash surrender value of $37,000.
Annual premium $41,250 (2.75%).
The client received $268,125 for his policy, 6.5 times more than if he surrendered his policy to the insurance company.
Individual female case study:
Female age 77 with coronary heart disease, breast cancer survivor.
$1,250,000 universal life policy with a cash surrender value of $28,750.
Annual premium $46,250 (3.7%).
The client received $381,562 for her policy, over 8 times more than surrendering her policy to the insurance company.
Company owned Key Man insurance policy:
Male age 83 with heart disease, COPD.
$7,000,000 universal life policy with a cash surrender value of $112,387.
Annual premium $270,200 (3.86%).
The policy was sold for $1,295,650.
Over 11 times the cash surrender value.
Term conversion policy:
Male 79 years old with colon cancer.
$1,000,000 term policy was converted to a universal life policy.
Converted annual premium $42,500 (4.25%)
Cash surrender value $0.00.
Prior to the actual conversion of the policy an offer of $186,000 was negotiated for our client. Upon conversion of the policy, it was immediately sold for $186,000.
The agent who recommended the transaction received over $40,000 in new commission. Another WIN-WIN for all involved.