Originally purchased for estate preservation, the policyowner 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 policyowner with $196,000, which he used for immediate retirement expenses and supplementary income.

The policyowner and his spouse originally purchased the policy 14 years prior for estate preservation. A couple of years after his wife passed away, he 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 policyowner with $270,000, which he used for supplementary retirement income.

Thirteen years earlier, a businessman purchased three policies with a total face value of $12 million for estate planning purposes. With total annual premium payments projected at over $206,000, he arranged for his business to fund the premiums for two of the policies as part of a split dollar agreement. Now, facing a downturn in his business, along with current annual premiums of more than $290,000, the policyowner decided he no longer wanted to keep the policies in force. He needed to repay his business just over $1 million for accumulated annual premium payments, while the policies' cash value was $962,400. He contacted his advisor who suggested a policy valuation. Coventry First paid the policyowner $1,271,000 for the three policies, which was more than enough to repay the accumulated annual premiums owed.

The policy was purchased 17 years prior by the policyowner for the benefit of his spouse. However, due to the prevailing low interest environment combined with the policyowner's funding strategy over the years, the $4,000 projected annual premiums increased to almost $21,000. Since the insured did not wish to continue paying the annual premiums and owned other insurance that served his estate planning goals, his agent suggested a policy valuation. Coventry First provided the policyowner with $30,000 for a policy that had zero value apart from the secondary market.

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 obtain a policy valuation. Coventry First provided him with $21,000 for a policy that had no value. The proceeds helped to supplement his retirement income.

The policy was originally purchased in 2007 by the policyowner for the benefit of his spouse. Finding he could no longer afford the premium payments, he 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 policyowner with $7,500 for a policy that had no surrender value. He used the proceeds to fund a 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 thought they should 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 help fund any remaining premium. Then, Coventry suggested the advisor look at SWAPP, which provided a much more attractive option and allowed them to maximize the death benefit without future premium obligations. Based on the insured's health and the need for the insurance, his advisor recommended SWAPP with a decreasing benefit. 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.