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.
Policy was no longer needed for estate planning
Client was able to fund all lifestyle and caregiving needs.
Client outlived all planning and premiums were due
The adult children no longer needed to fund the caregiving needs.
Financial ripple effect caused reductions in cash flow
Used the cash to fund their livelihood.
