The secondary market for life insurance gives policy owners powerful options for managing their life insurance policies.Through transactions like a life settlement or a life settlement with a retained death beneﬁt option, you and your clients now have the tools to tap into the market value of policies that are underperforming or are simply no longer needed. The result is new estate planning strategies that maximize value. Settle for More.SM
“Death Beneﬁt: $3,800,000
Policy Type: Universal Life Insured:
Male, age 77
Cash Value: $0”
The grantor established an ILIT to purchase a policy to offset the grantor’s estate tax liability. When the tax laws changed and the estate tax exemption was increased, the policy became unnecessary. Rather than lapsing the policy, the grantor and his family turned to Coventry.
Coventry provided the trust with $893,000 for a policy with zero cash value. The trust used the proceeds to fund the education of the grantor’s grandchildren.