Settlement Group

Case Studies

Couple Replaces Lost Income
A male, age 49, was diagnosed with a brain tumor. He had two $500,000 policies totaling $1 Million. Once his illness was diagnosed he could no longer work. In addition, he required at home care from his wife, thus creating a zero-income household. He owned a term policy, therefore, the cash value and surrender value was zero. After evaluating his options, he chose to complete a life settlement with SGI and received $325,000 for each of his policies to replace his families lost income. In addition, he eliminated premiums of $8,600 annually, which were no longer affordable under his current circumstances. His net gain was $350,000.

A Smart Investment
A healthy, male business owner, age 76 had three combined universal life insurance policies worth $2 Million. He made a business decision to take the fair market value for his policies and eliminate a business expense. His policies of $2M had a cash surrender value of $308K. By completing a life settlement transaction with SGI, he received $600,000 for the policies and eliminated $50,528 in annual premium payments. This is a net gain of $292,000.

Reduction in Estate Eliminates Need for Life Insurance
A female, age 83 had taken out a life insurance policy to cover the taxes on her estate. In time, her estate no longer required insurance coverage for tax planning. She held a whole life policy of $2Million, with a $78,720 annual premium. Her surrender value was $89,000. Through a life settlement transaction with SGI she received $320,000 – a net gain of $231,000 over the surrender value.