Life Settlement Case Studies
Case Study 1
Client: Male, 69 years old
Policy: 10 year, $10 million term policy
Situation: Client’s premium was about to increase and they no longer wished to fund the policy at the increased cost, so he was going to let it lapse by default.
Solution: Opulen Capital advised the client to have their contract appraised in the secondary market and were able to effectively negotiate an amount of $1,460,000 through the life settlement process.
Case Study 2
Client: Female, 84 years old
Policy: $3 million universal life policy
Situation: Client was paying an uncomfortable $166,000 per year in premium. The insurance was no longer needed, since the client’s assets had depreciated.
Solution: After working with Opulen Capital, the client received $1,090,000 through the life settlement process. This was $600,000 more than the cash value.
Case Study 3
Client: Male, 72 years old
Policy: $4 million universal life policy
Situation: Client no longer wished to fund policy and was planning to the take cash surrender value of $538,000.
Solution: Opulen Capital advised client to try life settlement process and was able to negotiate $1,041,840 for client.
Case Study 4
Client: Male, 75 years old
Policy: $3 million converted key man policy, owned by his corporation. Premium was $96,000 per year and cash surrender value was $29,000.
Situation: The corporation was expanding and was using all of its collateral for the expansion. The corporation wanted to keep the insurance but was burdened by the premium.
Solution: Opulen Capital reviewed the policy, sent evaluation to 8 institutional funders and was able to secure $550,000 for the client, which was then poured into a new policy resulting in a 20 percent lower premium, in addition to having money left over.
Case Study 5
Client: Female, 77 years old
Policy: 4 policies, totaling $7,741,407 in death benefit
Situation: Of her 4 policies, the client’s largest one was $3 million and due to be hit with a significant increase in premium at age 84. The aggregate annual minimum premium to take these policies out to age 100 was $285,740.
Solution: Under the direction of Opulen Capital, all four policies were sold and the proceeds were poured into four new policies guaranteed to age 100 for a combined premium of $155,500 (a 45 percent reduction in premium). There was also a significant amount of money left over for the client to use as she pleased.
Case Study 6
Client: Male, 82 years old and Female, 77 years old
Policy: SUL $3.5 million policy; cash surrender value of $200,000
Situation: Clients’ policy had a cash surrender value of $200,000. They were also at the end of their GRAT period and no longer required the insurance for their estate tax.
Solution: Opulen Capital had several institutional funders compete over the policy, resulting in a $576,923 sale price, which was $376,923 higher than the cash surrender value.
