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A $200,000 policy was purchased 17 years prior by the policyowner for the benefit of his spouse. However, due to the prevailing low interest rate 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 70 year-old policyowner, a financial advisor, had recently retired. He no longer needed his $999,999 term 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 surrender value. The proceeds helped to supplement his retirement income.
A $300,000 term policy was originally purchased in 2007 by the policyowner for the benefit of his spouse. Now 69 years-old, and realizing 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.
Simplified Settlement transaction process.
- A completed Simplified Settlement questionnaire, carrier illustrations and HIPAA medical release form are submitted to Coventry First.
- Coventry First values the policy and determines if an offer can be made.
- Coventry First relays offer to advisor.
- Offer must be accepted and subsequent closing documents must be returned to Coventry First within 30 days of offer being extended.