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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.

A STREAMLINED PROCESS.

With Simplified Settlements, Coventry has once again transformed the secondary market for life insurance. Now, policyowners with policies between $100,000 and $500,000 can access the market value of their life insurance.

Simplified Settlements offer clients all the advantages of traditional life settlements, with one major difference: a streamlined underwriting process means that transactions typically close in less than 30 days from receipt of required documents. So instead of policyowners surrendering smaller policies that are no longer needed, advisors can help them realize significantly more value – with a very quick turnaround.

Simplified Settlements present a tremendous opportunity to reach out to new clients. By helping these individuals transform unneeded policies into valuable assets, advisors can strengthen key relationships and provide significant value to their clients.