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Case Examples

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.

Ideal candidates for a simplified settlement.

Simplified Settlement candidates are generally insureds aged 65-90 with an unneeded policy of $100,000 - $500,000 (select cases between $500,000 and $1 million may also qualify) in face value.

Common scenarios leading to a Simplified Settlement include:

The policyowner has outlived the risk insured against.
The policy is no longer affordable within the policyowner’s financial plan.
Premium payments could be better allocated elsewhere.
A spouse has passed away.