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Sample Cases

A life settlement can generate financial rewards that assist in financial planning techniques that did not exist before the advent of the secondary market for life insurance and that can fund a higher standard of living in retirement, charitable contributions, gifts, or medical expenses. Although many life insurance agents and policyholders remain unfamiliar with the untapped financial asset hidden inside life insurance policies, life settlements present opportunities that are very real indeed.

Review the following examples of typical life settlements, then give us a call to see what we can do for you. The following examples are based on actual cases transacted by the principals or employees of Habersham Funding, LLC ("Habersham Funding") and are solely intended to demonstrate the potential benefits of life settlement transactions. These examples should not be used as an indicator of the purchase price Habersham Funding will pay for a specific life insurance policy.

Case #1

Insured Male, age 67
Policy Group
Face Amount $367,000
Cash Value $0
Life Settlement $218,000

This sixty-seven year old federal government employee was scheduled to retire within a few months when his financial advisor attended a life settlement seminar and learned about life settlements. Habersham Funding's principals advised the client to convert the policy at his retirement in order to maintain its face value (the policy would have been automatically reduced on the day of his retirement to $210,000 and eventually reduced to $78,000 (FEGLI Program Book for Federal Employees)). Through a life settlement, the client received $218,000, nearly 60% of the policy's face value.

Case #2

Insured Male, age 79
Policy Universal Life
Face Amount $467,000
Cash Value $24,000
Life Settlement $91,963

This newspaper executive had a life insurance policy with a face value of $705,000. However, he had borrowed $238,000 against the policy’s value, and was unable to repay the loan and maintain the increasing premiums. Habersham Funding recommended reducing the face amount of the policy to $467,000 through partial surrender of the loan, and purchased the reconfigured policy for $91,963, more than 3.5 times the cash surrender value of the policy.

Case #3

Insured Male, age 74
Policy Term
Face Amount $5,000,000
Cash Value $0
Life Settlement $1,010,000

This business owner was seeking to sell his company but did not receive any offer he considered to be sufficient. His financial advisor recommended a life settlement on the business-owned policy. The policy was sold in a life settlement transaction for $1,010,000. In combination with an offer for the business, the proceeds from the life settlement provided the business owner with the funds he needed to retire.

Case #4

Insured Brothers, age 73 and 77
Policy Universal Life
Face Amount $1,000,000 each
Cash Value $16,000 in both policies
Life Settlement $540,000 for both policies

Two partners purchased a business from the original three owners. Financial advisors to the new owners recommended an evaluation of the existing life insurance policies on the previous owners. These universal life policies had been under funded and retained very little cash value. With the assistance of Habersham Funding, the new partners sold two of the policies for $540,000 and used the unexpected capital to expand their new business.

Case #5

Insured Female, age 82
Policy Universal Life
Face Amount $32,000,000
Cash Value $168,000
Life Settlement $3,400,000

This wealthy woman no longer needed the several life insurance policies totaling $32 million dollars she owned. This was an unusually complex transaction involving multiple layers of trusts and corporate ownership. With her financial and legal advisors, she evaluated a number of life settlement providers and ultimately contracted with Habersham Funding for the transactions due to its good reputation and ability to handle even the most complex transactions. Habersham ultimately purchased the policies for $3,400,000.



Examples are based on actual cases transacted by the principals or employees of Habersham Funding and are solely intended to demonstrate the potential benefits of life settlement transactions. These examples should not be used as an indicator of the purchase price Habersham Funding will pay for a specific life insurance policy.