Coventry: Life Settlements


Life Settlement
Policy	Term
Insured	Male, age 75
Face Amount	$11,000,000
Cash Value	$0
Coventry First purchased the policy for $2,750,000.
Click for More Case Details As part of his retirement package, a retiring CEO received an $11 million term policy. Since he had no desire to maintain the ongoing premiums, his advisor suggested having the policy valued by Coventry First to determine its market value. The client opted for a Coventry First life settlement which enabled him to reach his goal of establishing a $2,750,000 million trust for his grandchildren. The case example details stated herein may be approximations and were reported to Coventry by the policyowner's representative and are being presented by Coventry without independent verification by the policyowner.


Life Settlement
Policy	Universal Life
Insured	Female, age 87
Face Amount	$6,500,000
Cash Value	$705,000
Coventry First purchased the policy for $2,500,000.
Click for More Case Details The client was still paying premiums in the tenth year of her seven-year vanishing premium policy. She was unhappy with the policy’s performance, but needed life insurance for estate planning purposes. Her attorney recommended having the policy appraised by Coventry First to determine its market value. The client chose a Coventry First life settlement which yielded more than three times the cash value of the policy. She used the proceeds to obtain more efficient coverage and meet her estate planning goals. The case example details stated herein may be approximations and were reported to Coventry by the policyowner's representative and are being presented by Coventry without independent verification by the policyowner.


Life Settlement
Policy	Multiple Whole Life & Universal Life
Insured	Female, age 83
Face Amount	$12,000,000
Cash Value	$2,400,000
Coventry First purchased the policy for $4,300,000.
Click for More Case Details The client’s current policies were underperforming. Her advisor, understanding her need for insurance for estate purposes, suggested a Coventry First life settlement. The market value of her policies provided her with $1.9 million more than the cash value in her old policies. Using the proceeds from the life settlement, she was able to obtain a new $15 million guaranteed death benefit policy. Although the cost per thousand for the new insurance was higher, the premium outlay was 30% less after the income from the life settlement. The case example details stated herein may be approximations and were reported to Coventry by the policyowner's representative and are being presented by Coventry without independent verification by the policyowner.


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Power to the Policyowner.
Life settlements have changed the way we think about life insurance. For consumers, life settlements and the secondary market for life insurance have unlocked the market value of life insurance, transforming unneeded policies into assets with significant value.

One Transaction. Multiple Applications.
A life settlement is a financial transaction in which a policyowner sells an unneeded life insurance policy for more than the policy’s cash value and less than its face value. But life settlements represent much more than an exit strategy for unneeded life insurance policies. With the assistance of an experienced advisor, a life settlement can be a springboard to achieving a client’s broader financial objectives.

Ideal Candidates.
Life settlement candidates are generally high net worth clients age 65 or older with:

A life insurance policy with a face amount of at least $250,000.
Life expectancy of 2-21 years.

Common scenarios leading to a life settlement include:

The client has outlived the risk insured against.
A spouse has passed away.
A business partnership has dissolved.
A key employee has retired after a long career.


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