Ira Stitz Associates, brokered this transaction which the insured's estate attorney had recommended versus allowing the policies to lapse or surrendering them for very little value.
The client was very satisfied with the outcome and grateful to his attorney for spearheading it.
The client owned three life insurance policies totaling $11.6 million which had been purchased over the years as a hedge against business loans taken out to grow his business. Once he retired, the client became burdened by the expensive annual premiums for life insurance that he no longer needed.
His estate attorney recommended the client consider selling his unwanted policies in the secondary market, and Ira Stitz Associates was asked to broker the transaction to multiple funders to obtain the highest market value.
After completing the underwriting process, Ira Stitz Associates initiated the bidding process in the secondary market. Achieving the client's objectives required intense negotiations with multiple institutional funders, each of whom had unique funding requirements.
In the end, Ira Stitz Associates was able to broker a transaction involving two separate funders that provided the client with relief from future premiums, $2 million in retained life insurance coverage, and a cash payment of $240,000. The client was very satisfied with the outcome and grateful to his attorney for spearheading the case and referring him to Ira Stitz Associates for their guidance in pursuing the transaction.
If you are an estate planner and would like to learn more about how life settlements can help address a variety of complex planning challenges, feel free to contact us.