Business Policy

A small business owned a $1M term policy on a former owner since retired. If the policy was kept in force the premium would skyrocket and the business no longer needed the policy.

Outcome: The business received just over $220,000 for the policy which was used to help pay for a building upgrade and to finance a new marketing program.

Trust-Owned Life Insurance (TOLI) Policy – Policy Death Benefit Split

A trust held a $5M universal life policy on a husband (83) and wife (77) who no longer wished to gift to the trust, there was minimal cash value in the policy, and the beneficiaries did not want to fund the policy.

Outcome: The trustee was able to obtain a net offer of just under $600,000 for the sale of the policy. However, in addition to that offer, the trustee received an offer for the trust to retain $2M of the death benefit, leaving the balance with the outside investor who would fund the entire policy until the death of the insureds. This allowed the trust to continue to be funded with a $2M benefit for the beneficiaries and enabled the grantors to discontinue gifting annually to the trust.