INSOLVENCY
Melville Capital is a Life Settlement Broker focused on monetizing and liquidating existing Life Insurance Policies in insolvency-related matters where the insurance policy is unwanted, unnecessary or too expensive to maintain.
We represent individuals and/or companies in transition, Turnaround and Bankruptcy advisors, and Trustees helping policy owners obtain the True Market Value for their policies.
Since 2005, our team of licensed insurance professionals has represented individual, Trust, Corporate and Institutional sellers, providing solutions ranging from single policy to complex portfolio sales, handling all aspects of the transaction.
We’ve transacted more than $2 billion in face amount, marketing each policy to a large network of institutional investors, to secure the best offer for our clients.
The end result is that our clients receive a lump sum cash settlement (averages 4x’s the Cash Value) AND are also relieved of all future premium payments.
What to Look For:
- An insured over the age of seventy (70) with an in-force Universal Life (UL), Variable Universal Life (VUL), Survivorship (SUL or SVUL), Term Life*, or Whole Life insurance policy with a minimum face amount $500,000.
- The need for liquidity outweighs the need for insurance coverage and the policy has been in force for at least 2 years.
- The life insurance policy must be issued by an Insurance Carrier with a credit rating of “A” or better by AM Best.
*Many Corporate Owned Policies are Term, and as such, there may be significant hidden value in these “no cash value” policies.
Corporate Application of Life Settlements
Companies have changing circumstances which make Key-Person life insurance policies or policies used to fund a buy/sell agreement superfluous.
Change of circumstances include:
- Declining Financial Performance
- Bankruptcy
- Liquidation
- Refinancing
- Retirement or Loss of Key Executive(s)
- M&A, Private Equity Transactions
- Restructuring
Potential Benefits to the Company/Client:
- Proceeds from a policy sale can fund a turnaround, reduce leverage, drive liquidation or recovery values
- Helps pay Professional Fees
- Maximizes asset recovery for Creditors
- Provides a point of differentiating for the Professional suggesting this option
- No obligation & no upfront costs
- Relief of premium expense
- Alternative to surrendering or lapsing a policy