Life Settlements. Anthony Ridd Director of Life Settlements LifeStyle Insurance Services 800-493-2056. What is a Life Insurance Settlement?. A cash payment to the owner of a life insurance policy in exchange for the assignment of ownership of the policy
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Director of Life Settlements
LifeStyle Insurance Services
Face Amount: $7,000,000
Policy was owned by a trust
Reason For Sale: Insured could no longer afford the annual premium of $250,000. She sold her policy and invested the settlement amount in a new $7,000,000 policy. Premiums for the new policy were reduced to $119,000.
Agent compensation: $350,000 on settlement and sale of new policyLifeStyle Case # 1
Reason for Sale: The insured owned a convertible term policy and wanted to continue the same coverage in a permanent policy but those premiums were unaffordable. The insured sold his existing term policy, which had no cash value, for $547,157. He then purchased a new $5,000,000 permanent policy with the proceeds of the settlement.
Agent made: $403,000 on settlement, conversion and new policy. His renewals will be on both the conversion & the new policy
Reason for Sale: The premium for the insured’s life insurance policy were expensive and becoming difficult to afford. In addition, the insured experienced a substantial reduction in estate value and no longer needed as much life insurance to pay estate taxes. He was able to sell his life insurance policy for twice the Cash Surrender Value.
Agent compensation: $30,000 on settlement
Reason for Sale: The insured owned a 10 year convertible term policy with three years of coverage left. At the end of the conversion period the insured decided to sell his policy for a lump sum.
Agent Compensation: $6,000 on settlement
10-year-old, $1,000,000 face amount policy
$60,000 Cash Surrender Value
$200,000 Settlement Offer
Taxed as Capital Gains
Taxed as Ordinary Income
Cash Surrender Value (basis & earnings)
Taxed Basis (Premiums Paid)