Insolvency

Melville Capital is a Life Settlement Broker focused on monetizing and liquidating existing Life Insurance Policies in Insolvency matters where the policy has become unwanted, unneeded or too expensive to maintain. We are focused on generating substantial cash flow to individuals/companies in transition, policy owners, Turnaround and Bankruptcy advisors, and Trustees.

We represent the policy owner, insured and referral source in negotiating and accepting bids from competing Institutional Investors. We handle all aspects of the transaction delivering a lump sum cash settlement that is often 2-5x the cash surrender value and relieving the policy owner of all future premium payments.

What to Look For:

  • Policies on those 70 years and older
  • Policies $500k+ in Death Benefit/Face Amount
  • Universal Life, Variable Universal Life, Survivorship Universal Life and Convertible Term Policies***

***Many COLI Policies are Term, and as such, there may be significant hidden value in these “no cash value” policies.

Corporate Application of Life Settlements

Companies often have changing circumstances and/or Executive/Owner turnover, making Key-Person life insurance policies or policies used to fund a buy/sell agreement moot.

Change of circumstances include:

  • Declining Financial Performance
  • Bankruptcy
  • Liquidation
  • Restructuring
  • Refinancing
  • Retirement / Loss of Key Executives
  • M&A, Private Equity Transactions

Potential Benefits to the Company/Client:

  • Proceeds from policy sale can fund turnarounds, reduce leverage, drive liquidation / recovery values, enhance severance packages
  • Helps pay Professional Fees
  • Maximizes Asset Recovery for Creditors/Unsecureds
  • Monetizes an Often Overlooked Asset
  • No Obligation & No Upfront Costs
  • Relief of Premium Expense
  • Alternative to Surrendering or Lapsing a Policy
  • *Opportunity to use proceeds to issue a new paid-up or more attractive policy if coverage is still needed/wanted