Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Life Insurance

Life Settlement Example

Your article was successfully shared with the contacts you provided.

To better demonstrate the successful utilization of life settlements, I offer an example of how an unneeded life insurance policy ultimately was translated into more preferable coverage. Please note that this example is for illustrative purposes only and does not represent any specific life settlement case either presently or in the past.

Situation: An individual, age 73, has a $2 million life insurance policy with little cash value and a recent reduction in estate tax liability that, combined with effective gifting strategies, render the policy unnecessary.

Solution: Upon recommendation by his financial planner, the gentleman utilized the $720,000 settlement to fund long term care insurance on himself and his wife through an immediate annuity. He was pleased to “find a market” for his life insurance policy, which provides capital to fund other insurance needs.

–A. Mark Berlin Jr.

Reproduced from National Underwriter Edition, March 17, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved. Copyright in this article as an independent work may be held by the author.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.