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Case Study #1 A 78 year old male. He held three universal
life policies totaling $1.2 million and the
total premiums he paid on the three policies
totaled $34,960. The client wanted to reduce
his annual premiums while maintaining
similar coverage. The client used the
$400,000 settlement offer to purchase a
new $1 million single-premium universal life
policy. The client saved $34,960 per year
in annual premiums, but still maintained the
coverage he needed. Case Study #2 Husband 76 and wife 71. They were paying
$93,000 a year for a $4 million survivor
life policy with $204,000 cash value. The
client wanted to lower his premiums and
maintain coverage. The client used the
$1,000,000 settlement offer to purchase a
new $4 million single premium survivor life
policy for $713,000. He not only eliminated
his $93,000 annual premium but received
$287,000 in cash, more than the cash
value in his existing policy.
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“Because of the
financial impact,
financial advisors
have a duty to
educate policyholders
about the settlement
option…”
On
Wall Street
November 2002 |
