Company-owned key man policy on a retiring business owner. Due to the costly conversion premium, the company planned to lapse the policy. The retiring business owner negotiated for the policy ownership to be transferred to him. Afterward, his advisor suggested he have his life insurance policy asset appraised for secondary market value.
Donated policy to a charity ran out of cash value to pay premiums
Donor was able to create a living legacy and enjoy seeing the gift used while living.
Policy was underfunded and sitting in an ILIT
Eliminated future premium payments and used the funds for medical bills.
Financial ripple effect caused reductions in cash flow
Used the cash to fund their livelihood.
