Premium Reduction Strategy
Life Settlements
Reducing or eliminating premiums while maintaining appropriate life insurance portfolio.
Example: Annual Premium Outlay Reduced by $38,308
Facts: $3,000,000 in life insurance coverage maintained for Federal & State Estate Taxes. Premiums were reduced from $111,795 to $73,487 annually on a more beneficial policy.
- Objective: Reduce premiums and maintain coverage
- Client: Male, Age 79, good health
- Current Policy: $3,000,000 Universal Life
- Cash Surrender Value: $225,000
- Fair Market Value: $1,250,000 Life Settlement
- New Policy: $3,000,000 Universal Life
- Life Settlement: $1,250,000 applied to new policy
- New Annual Premium: $73,487
- Old Annual Premium: $111,795
- New Annual Premium: $73,487
- Annual Savings: $38,308
