K
- key person life insurance
- A life insurance policy owned by a business on the life of an employee and/or stockholder whose services are critical to the business's success and whose death would cause financial loss to the business.
Policy Settlement
"If you go the life-settlement route, start with an estimate of the policy's market value. You can use the free tool (LIVEpdq) at policysettlement.com, which is run by Norman Hood." - Kiplinger's Retirement Report. July 2008.
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.
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