Company-owned key man policy on a retiring business owner. Due to the costly conversion premium, the company planned to lapse the policy. The retiring business owner negotiated for the policy ownership to be transferred to him. Afterward, his advisor suggested he have his life insurance policy asset appraised for secondary market value.
Financial ripple effect caused reductions in cash flow
Used the cash to fund their livelihood.
Could no longer afford premiums
Received a lump sum and reallocated premiums for today’s needs.
Their needs had changed, and they no longer needed the policy
They were able to uncover significant liquidity and fund their retirement.
