CLIENT OUTCOMES
Melville Capital is focused on helping clients reach their specific goals and objectives. We’ve achieved many successful outcomes for clients across the spectrum as evidenced by some of the cases highlighted below.
Click on any of the cases below to view details regarding client circumstances and outcomes:
Individual Client Successes:
Personal Needs – Female, Age 81
$1,400,000 UL Policy (CSV = $46,000)
- Husband passed away
- Children grown and successful
- Feels policy is excessive
- Wants monthly income stream
- Life Settlement Solution
- Settlement Amount of $327,000
- Proceeds invested into immediate Annuity
- Received $281,000 over surrender
Estate Planning – Male, Age 77 & Female, Age 76
$5,000,000 Survivorship UL
- Policy underperforming
- Updated planning, only need $2MM
- If 1035, projected premiums = $84,000 per year
- Life Settlement Solution
- Net offer = $700,000
- Use as lump sum dump, new policy
- Projected annual premiums = $53,000
- $31,000 per year savings
Philanthropic, Male, Age 76
$5,000,000 Survivorship UL
- No longer needs policy
- Desires to be more supportive of charity
- Could donate to charity for deduction of CSV and make premiums each year as additional contribution to receive deductions
- Life Settlement Solution
- Set up CRT
- Obtain appraisal of policy in the secondary market = $540,000
- Donate policy to CRT and settle policy
- Get deduction based on the $540,000
- Receive annual income stream from proceeds
Chapter 11 Bankruptcy – Two Insureds, Mid 70’s
$1,400,000 Policy ($104,000 CSV)
- Buy/Sell Agreement
- Insured Senior Partner of Large Medical Practice
- Aggressive Office/Equipment Expansion Over Levered Business ⇒ loan defaults
- Life Settlement Solution
- Settlement amount of $545,000 vs. $104,000 CSV
- Proceeds used to reduce leverage
- Received $441,000 over surrender
Buy/Sell Example – Male, Age 79
$1,400,000 Policy ($104,000 CSV)
- Buy/Sell Agreement
- Insured Senior Partner of Large Medical Practice
- Aggressive Office/Equipment Expansion Over Levered Business ⇒ loan defaults
- Life Settlement Solution
- Settlement amount of $545,000 vs. $104,000 CSV
- Proceeds used to reduce leverage
- Received $441,000 over surrender
Out-of-Court Restructure – Male, Age 69
$3,000,000 UL Policy ($117,000 CSV) $3,000,000 Term Policy
- Insured Founder & CEO
- Company endured 18 months of significant EBITDA decline
- Company hired crisis consultant who determined sale best option
- Life Settlement Solution
- Settlement amount of $936,000
- Cash provided critical liquidity for company until sale complete
- Received $819,000 over surrender
Key Man Policies - Male Insured, Age 68
$34,000,000 in Term and UL coverage (CSV= $25,000)
- Insured was CEO of family-owned business that bought insurance as a wealth transfer vehicle
- He had LE’s between 30-180 months due to cancer & different opinions on his survival rate
- Trustee was unfamiliar with LS process and let two $10MM UL’s lapse while the original LS broker marketed policies
- Life Settlement Solution
- Trustee hired Melville – policies re-marketed the “right” way
- Melville secured total proceeds of $8.9MM across the 3 remaining policies through 2 different buyers
DISCLAIMER
Life Settlement amounts are based on numerous factors. The case examples are for illustration purposes and does not represent future offers, statements, percentages or amounts. Actual results will vary. The industry average purchase price obtained by viators ranges from 12-24% of the face amount of a qualified life insurance policy. Some or all of the proceeds of a life settlement may be taxable under federal or state income tax laws from the sale of one’s life insurance policy. Advice from a professional tax advisor is recommended. Melville Capital is a licensed broker or producer.
