get a secondary opinion®
The American Tax Payer Relief Act (ATRA) has caused many seniors to question the amount of life insurance they still need to carry for estate protection. Many of those seniors want to retain some coverage but feel they no longer need all of it. That’s where a split death benefit life settlement can be an ideal solution. In this scenario the policy owner sells the policy but is able to retain a portion of the death benefit for beneficiaries and does not have to make any future premium payments.
Case Example | Split Death Benefit Life Settlement
During the annual policy review conversation, it was discovered that the policy owner didn’t need as much insurance as a result of the increase in the
Estate Tax Exemption & Portability. The client wanted to keep some of the coverage
but didn’t need all of it. They completed a SMV®, Secondary Market Valuation, to determine fair market value.
• Male age 78, $10 Million Universal Life
• Cash surrender value=$67K
The SMV® estimated fair market value at $697,000 for a lump sum payment.
Instead of a lump sum payment, the client opted to take a split death benefit offer and received
$2.15 million death benefit placed in an irrevocable trust for his beneficiaries with no future premium payments