Case Study #1:
Two Carriers (WL & UL)
Gross Face Amount: $7,000,000
Gross Cash Value: $1,300,000
Male Insured Age: 75
Client Sold Policies for: $2,800,000

In this case the insured had $7 million dollars of coverage for estate planning purposes. He met with his accountant while he was experiencing a temporary liquidity problem. He was real estate "rich" yet "cash" poor. The advisor recommended either selling some of his property or borrowing against the cash value in his policies. Neither of these options were palatable.

They explored the option of a Life Settlement with their insurance advisor. They also realized that the gentleman still required $7 million dollars in coverage for his two children.

The agent did a simultaneous transaction. He arranged for the sale of the old coverage through the Rumson Group, using a portion of the proceeds to purchase the new, less expensive coverage.

The result: The client put a net $1,800,000 into his pocket, using the balance as an initial deposit into the new $7 million of coverage. The agent made a substantial six figure commission on both transactions.

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Case Study #2:
Survivorship Universal Life
Gross Face Amount: $5,000,000
Net Cash Surrender Value: $550,000
Male Insured Age: 78
Female Insured Age: 76
Clients sold policy for: $1,100,000

In this case the clients no longer needed the five million in coverage for estate tax purposes. Instead, they required only $2.5 million dollars in coverage. By utilizing a Lifetime Settlement through The Rumson Group, the agent secured the client an additional $550,000 over the cash surrender value.

With the additional money, the clients purchased a new $2.5 million dollar policy, where the first year's premium was only $125,000, no premiums in the next two years, and $32,000 for the remaining seven years. This not only addressed the client's current estate planning needs, but it also put nearly one million dollars into their investment trust.

This two tiered transaction also generated a substantial six figure commission for the agents who were involved in both the Life Settlement and the new insurance sale.

For more case studies, call (215) 886-9633.