LIFE SETTLEMENT GLOSSARY EXAMPLE
MALE - Age 69
$500,000 10 Year Level Term
- $1,985 Annual Premium
- $13,882 Conversion Annual Premium
Life Insurance Settlement Amount of $16,500
A retiree was about to drop his expiring term policy when he discovered it could be converted and sold using a life settlement.
As a result of the sale, he recovered most of the term premiums he had paid over the past ten years and used the proceeds to offset the cost of an extended tropical vacation.
H
- heir
- Any individual or entity that inherits a portion of a deceased person's estate.
- human life value
- The net present value of an individuals future earning power based on income, expenses, remaining working years, and an appropriate discount rate.
- hybrid premium finance
- A type of life insurance premium financing that accepts the projected future life settlement value policy is the primary collateral for loaning future premiums. The borrower also posts a modest amount of collateral beyond the insurance policy and may or may not be personally responsible for repaying part or all of the loan.
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