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Actual and Recent Life Settlement Cases |
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Examples are based on actual cases submitted to Invescor, Ltd. and are solely intended to demonstrate the actual offers made on these life settlement transactions. These examples should not be used as an indicator of the purchase price any life settlement provider or financing entity will offer or pay for a particular life insurance policy. |
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| Gender: |
Male |
Gender: |
Male |
| Age: |
76 |
Age: |
70 |
| Face Amount: |
$4,300,000 |
Face Amount: |
$500,000 |
| Net cash surrender value: |
$0 |
Net cash surrender value: |
$0 |
| Net amount to client: |
$1,400,000 |
Net amount to client: |
$45,000 |
| % of policy face amount: |
32.6% |
% of policy face amount: |
9% |
| % Increase over net cash surrender value: |
N/A |
% Increase over net cash surrender value: |
N/A |
| Reason for Sale: |
Estate Planning |
Reason for Sale: |
Policy no longer needed |
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| Gender: |
Male |
Gender: |
Female/Male |
| Age: |
75 |
Age: |
82/83 |
| Face Amount: |
$2,000,000 |
Face Amount: |
$8,100,000 |
| Net cash surrender value: |
$15,000 |
Net cash surrender value: |
$1,100,000 |
| Net amount to client: |
$925,000 |
Net amount to client: |
$1,750,000 |
| % of policy face amount: |
46.3% |
% of policy face amount: |
21% |
| % Increase over net cash surrender value: |
6,166.7% |
% Increase over net cash surrender value: |
154.5% |
| Reason for Sale: |
Could no longer afford
the premiums |
Reason for Sale: |
Estate Planning |
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Not all policies will receive comparable offers. Each situation is unique. Your client's offer may be potentially less favorable. Factors that affect the amount of the offer include but are not limited to age, gender, health, and life expectancy of the insured as well as the type, face amount, and cash value, if any, of the life insurance policy under consideration. In general, factors that would increase the insured's life expectancy would result in lower offers, and those that would decrease life expectancy would result in higher offers.
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- A Life Settlement transfers ownership of the policy to a person who does not have an insurable interest in the life of the insured but rather acquires a financial interest in the early death of the insured.
- Once the policy is transferred, the original policy owner has no control over subsequent transfers, and there is no limit to the number of subsequent transfers that may occur.
- Accelerated benefits may be offered by the insurance company, which should be considered carefully before making a decision.
The tracking procedures that will be used by the purchaser of the policy to determine whether or not the insured has died include but are not limited to:
- the insured agreeing to provide periodic health updates and/or to periodically update the designated contact information
- the insured agreeing to list three (3) designated contacts that can be contacted from time to time for information regarding the insured’s health status (these contacts will have a “professional relationship” with the insured, for example, a primary physician, an attorney, an accountant, a financial advisor, etc., family members, who are at least 18 years of age should only be designated so long as they understand and agree to be contacted)
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This actual transaction was net of all fees and commissions, which will vary depending upon the specifics of each completed life settlement transaction through Invescor, Ltd. and earned by the life settlement broker and the life settlement agent only upon completion of the transaction. The exact amount is disclosed at the time of client offer acceptance and again when the life settlement closing paperwork is signed. The maximum aggregate compensation will be the lesser of: a) the aggregate compensation allowed by the life settlement provider or financing entity's guidelines; or b) the maximum amount permitted by state law governing the settlement of the policy, which varies by state (not all states regulate life settlements).
The sale of a life insurance policy may be a taxable event. Professional tax advice should be sought. Neither Invescor, Ltd. nor any of its employees provide any tax advice. |
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