Like many philanthropic individuals do, Edna donated her life insurance policy to a charitable organization she loved. At the time, the cash value was expected to carry the policy so neither party would have to make a premium payment. However, Edna lived well beyond her financial plan and the policy was running out of money. The life settlement created liquidity the charity could use for today’s needs and Edna could witness her donation put to work.
Their needs had changed, and they no longer needed the policy
They were able to uncover significant liquidity and fund their retirement.
Policy was underfunded and sitting in an ILIT
Eliminated future premium payments and used the funds for medical bills.
Client outlived all planning and premiums were due
The adult children no longer needed to fund the caregiving needs.
