Keith Bangert, Capitas Sales VP, Recently Completed a
Life Settlement Exit Strategy for Corporate Key Man Client
This case involved a $1.5 million term policy which was purchased 19 years ago on a 60-year-old owner/employee. The original purpose for the key man policy was to provide the business with the necessary cash flow in order to buy back company stock in the event of the employee’s death.
Four years ago when the insured reached the age of 75 and the term policy was nearing expiration, the company’s insurance agent facilitated the conversion of the key man term policy to a universal life policy.
Now that the insured is 79 years old and fully retired, the company decided it no longer had the need to continue the life insurance policy on him.
Similarly, the insured was not interested in keeping the policy for estate planning purposes.
Asset Life Settlements brokered the transaction in the secondary market and obtained a life settlement in the amount of $161,250. The business was glad that their insurance agent had recommended the conversion of the term policy and was thrilled to receive the cash windfall for a policy they were about to let lapse.