Benefits for the Financial Professional
- Create new capital for your client
- Sell more needed or cost effective life products or annuities
- Reduce lapse rates
- Keep original policy in force
- Offer a creative valuable service to your clients
- Receive extra commissions
- Keep renewal and trailer incomes
Benefits for the Policy Holder
- Purchase life insurance to cover estate taxes
- Estate size changes creating the need for a larger or smaller face value to cover taxes
- Fund new more cost effective coverage
- Fund a life product that better suits individual needs
- Purchase a survivorship policy
- Pay off a debt
- Funds for a charitable gift / Gift to family members
- Create funds to invest elsewhere
- More valuable alternative than surrendering a policy
- Purchase long term care insurance
Business Applications
- Key-man insurance no longer needed
- Buy/sell agreement is no longer needed due to a company sale
- Purchase a minority interest in a business
- Bankruptcy creates need for liquidation
- Pay off company debt