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.
Q
- qualified institutional buyer
- Any of a broad list of entities that either acts on their own
behalf or on behalf of other qualified institutional buyers, and in the
aggregate own and/or invest on a discretionary basis at least $100
million into the securities of unaffiliated issuers.
- qualified loan
- A US tax-advantaged pension plan or employee-benefit plan that
complies with applicable federal government requirements.
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