Originally purchased for estate preservation, the client could no longer afford premium payments on the policy. Rather than allowing the policy to lapse, his advisor suggested a policy valuation. Coventry First provided the client with $196,000, which he used for immediate retirement expenses and supplementary income.

The client and his spouse originally purchased the policy 12 years ago for estate preservation. A couple of years after his wife passed away, the client approached his advisor because he no longer needed the coverage and could not afford premium payments. Rather than allowing the policy to lapse, his advisor suggested a policy valuation. Coventry First provided the client with $270,000, which he used for supplementary retirement income.

In 2002, the client purchased three $1.35 million term policies for business purposes. Two of the policies were used to cover a loan, and the third policy was used as part of a buy/sell agreement. The client’s company eventually declared bankruptcy and he could no longer afford to pay the premiums. He took ownership in his trust in order to keep the policies, but was concerned that they would lapse. He discussed the situation with his advisor, who suggested a policy valuation. Coventry First provided the client with $164,750, which he used to fund his retirement.

The policyowner held a universal life policy for 19 years, but circumstances forced him to withdraw much of its value. As a result, the cash value was reduced to $1,100. In addition, premiums had risen to $8,000 annually, which he could not afford to pay. His advisor recommended a policy valuation. Coventry First purchased the policy for $50,000.

The policyowner, a financial advisor, had recently retired. He no longer needed the policy and considered letting it lapse, but being familiar with life settlements, decided to have a policy valuation. Coventry First provided him with $21,000 for a policy that had no surrender value. The proceeds helped to supplement his retirement income. And Simplified Settlement allowed the transaction to be completed within 90 days.

The policy was originally purchased eight years ago by the client for the benefit of his spouse. Finding he could no longer afford the premium payments, the client approached his advisor for help. His advisor suggested a policy valuation as well as replacing the policy with a new term policy. Coventry First provided the client with $7,500 for a policy that had no surrender value. The client used the proceeds to fund the new policy.

The policy had been taken out in 1992 by the insured’s family trust for estate planning purposes, to benefit the insured’s children. Due to the low interest rate environment of the last several years, the $13,600 annual premium was no longer keeping the policy in good standing and the cash value was eroding very quickly. Over the years they had contributed a total of $245,000 in premiums, so the family was shocked to see the last annual statement reflect a cash value of only $23,600. Realizing they would need to substantially increase annual contributions, they decided to consult their advisor. He suggested a policy valuation. The family wanted to keep some coverage but was not in a position to gift additional money to the trust. They were very pleased that SWAPP enabled them to retain $300,000 of coverage with no future premium payments.

In 2008, the insured’s daughter purchased two identical $1.5 million policies in preparation for her mother’s estate tax liability. After several years, the mother’s projected estate liability changed. The daughter contacted her advisor and voiced concern over the premium payments and her need for a reduced amount of insurance coverage. Her advisor had one of the policies appraised for a cash settlement and received an offer of $250,000. The daughter declined the offer and elected to keep both policies.

Subsequently, the advisor contacted Coventry and expressed the daughter’s desire to lower the cost of premium payments and address the reduced need in coverage for her mother’s estate. Coventry suggested SWAPP as an alternative. SWAPP made it possible for the daughter to retain $500,000 in death benefit with no future premium obligations for one of her policies. Combined with the other policy, this gave her a total of $2 million in coverage while reducing the overall premium outlay.

In 1997, the insured, a businessman and father, purchased three $1 million term policies through a trust to help transfer ownership of the family business to his children. After several years he asked his financial advisor about the possibility of a life settlement but decided to continue funding the policies, as he had experienced a change in health. As the conversion deadline for the policies approached, he contacted his financial advisor again. His advisor understood the policyowners’ discomfort with the increasing premiums, but wanted them to maintain some coverage.

A policy valuation yielded a cash offer of $200,000 per policy. They considered selling one or two of the policies to fund the premiums of the remaining ones. Then Coventry suggested the advisor look at SWAPP, which provided a much more attractive option and allowed them to maximize the death benefit without premium obligations. Based on his health and the need for the insurance, SWAPP with decreasing benefit was ideal. The policyowners retained coverage without premium obligations beginning at $2.1 million for the first 5 years, $1.3 million for the following 5 years and continuing at $1 million thereafter.