Life Settlement Case Studies

A 76-year-old policyholder, facing health challenges and changing financial needs, was on the verge of letting their $100,000 life insurance policy lapse. Fortunately, their agent saw an opportunity and turned to Welcome Funds for guidance. By partnering with us, they discovered that a life settlement could yield a much better outcome than simply allowing the policy to lapse.

We moved quickly, utilizing our expertise and auction platform to attract five competitive bids from licensed buyers. The result? A $12,375 payout for the policyholder—far exceeding the zero dollars they would have received otherwise.

This case highlights the importance of considering life settlements. Even policies with no cash surrender value can hold significant hidden worth, providing much-needed financial relief when it matters most.

Policy's Insured	Male | Age 76
Health Status	Mild Health
Policy Type	Lincoln Life
Face Amount	$100,000
Annual Premium	$4,451
Surrender Value	$0

Life Settlement Payout $12,375

An 87-year-old policyholder was facing a difficult decision with his $600,000 AXA Universal Life policy. Years of inconsistent premium payments had depleted the policy's cash value, and escalating premiums made it increasingly unaffordable. He was resigned to surrendering the policy for a mere $25,078.

Fortunately, his financial advisor recognized the potential for a life settlement. Working closely with Welcome Funds, they explored this alternative - aiming to unlock any hidden value within the policy.

The result was remarkable. Through our competitive life settlement auction, where he received an impressive 19 bids, securing an offer of $132,100 for the client – nearly ten times the surrender value! This fierce competition for the policy demonstrates the power of our auction platform in driving up offers and maximizing client returns.

Policy's Insured	Male | Age 86
Health Status	Fair
Policy Type	Universal Life
Face Amount	$600,000
Annual Premium	$33,305
Surrender Value	$25,078

Life Settlement Payout $132,100

Kevin purchased a 10-Year level term policy at age 58 to provide his family with some financial security. The expiration date was fast approaching and William's medical bills were mounting. In need of some financial relief, Kevin was contemplating canceling the policy.

Thankfully, Kevin's wife reached out to Welcome Funds to see if the policy had any life settlement value. It did. Based on Kevin’s age and health, Welcome Funds secured William and his wife $30,000, which is certainly better than lapsing the policy for $0.00.

Policy's Insured	Male | Age 66
Health Status	Poor
Policy Type	Term Life Policy
Face Amount	$100,000
Annual Premium	$5,799
Surrender Value	$0

Life Settlement Payout $30,000

Scott purchased a $6M 10-year term policy at age 59 to protect his family and business interests. A decade later, approaching the term conversion deadline, Scott was facing a $148,000 annual conversion premium. He did not want to pay this much for coverage. He spoke with his advisor who recommended looking into the life settlement option. Based on his significant health history, he told Scott he could “probably get $1M bucks.” Scott was thrilled.

They contacted Welcome Funds and experienced the power of the firm’s auction platform. Scott received 25+ offers and was overwhelmed when he ended up receiving $2,650,000! He is enjoying his retirement with plenty of cash in the bank. Both Scott and his advisor who was paid on the conversion are extremely happy.

Policy's Insured	Male | Age 69
Health Status	Poor
Policy Type	Term Life Policy
Face Amount	$6,000,000
Annual Premium	$148,000
Surrender Value	$0

Life Settlement Payout $2,650,000

After investing over $600,000 in life insurance payments, Ann and her family faced a difficult choice: surrender the policy for a fraction of its worth or continue paying costly premiums. Thankfully, their financial advisor was familiar with Welcome Funds and a third option: a life settlement.

Welcome Funds analyzed the policy and determined it had significant value in the life settlement market. Our competitive auction-based platform generated 27 offers! Ultimately, Ann secured a $1,885,000 payout, an overwhelmingly superior outcome compared to the $6,000 cash surrender value.

Policy's Insured	Female | Age 87
Health Status	Fair
Policy Type	Universal Life
Face Amount	$450,000
Annual Premium	$329,420
Surrender Value	$6,000

Life Settlement Payout $1,885,000

After paying premiums on his life insurance policy for years, Larry’s liquidity needs and health changed significantly. Times were tough, so to maintain his savings, Larry decided it was best to lapse the coverage. Thankfully, Larry’s advisor contacted Welcome Funds during the policy's grace period to determine if the policy had any value in the secondary market.

After an initial analysis, it was evident that Larry was an excellent candidate for a life settlement. Welcome Funds negotiated multiple bids and secured a purchase price of $173,005! Larry used the proceeds from the settlement to pay for costly treatments and to maintain his quality of life, stress-free. The advisor not only earned a well-deserved commission but also receives client referrals from Larry and his family as appreciation for his brilliant recommendation!

Policy's Insured	Male | Age 74
Health Status	Poor
Policy Type	Group Universal Life
Face Amount	$500,000
Annual Premium	$10,856
Surrender Value	$0

Life Settlement Payout $173,005

Mark bought an individual $2M Lincoln National Universal Life policy in 2017 (at age 78). Due to financial constraints, he could no longer afford the $104,330 annual premium to maintain the life insurance policy. Unfortunately, reducing the Death Benefit was not a consideration because there was very little cash in the policy.

Mark thought he needed to surrender the life insurance policy for $4,811. When he asked his financial advisor to send him the surrender paperwork, the advisor suggested the life settlement option and Welcome Funds. Mark realized that anything above his surrender value would be a victory. It certainly was, in a big way.

Policy's Insured	Male | Age 78
Health Status	Good
Policy Type	Universal Life
Face Amount	$2,000,000
Annual Premium	$104,330
Surrender Value	$4,811

Life Settlement Payout $250,000

Mr. Williams purchased $10 Million in life insurance coverage in 2001 to provide his family with financial security. Over time, his financial priorities changed: his wife passed away, his children became financially independent, financial burdens arose and the estate tax exemption increased substantially. Therefore, the coverage was no longer needed and surrender was being considered. Fortunately, his advisor was aware of a more beneficial exit strategy, the ability to sell life insurance policies in a regulated secondary market.

He presented Mr. Williams with a pre-market policy valuation report from Welcome Funds that estimated the market value to be substantially higher than the $275,485 surrender value. They were both shocked at the difference. Although Mr. Williams had never heard of a life settlement, he embraced the process, and well, the result – a difference of $4,467,51 - speaks for itself!

Policy's Insured	Male | Age 86
Health Status	Heart Disease
Policy Type	Universal Life
Face Amount	$10,000,000
Annual Premium	$445,114
Surrender Value	$275,458

Life Settlement Payout $4,743,000

Ronald purchased a $300,000 Universal Life policy back in 1999 to provide his wife with financial security. Unfortunately, after 20+ years, Ronald could no longer afford the premium payments as his healthcare costs were mounting. One day, while watching the evening news, Ronald saw a TV commercial from a direct buyer, called a life settlement provider, about selling a life insurance policy for cash. Ronald decided to call the direct buyer and after weeks of waiting, he was offered $10,000 for his $300,000 policy. Ronald said, “no way,” and decided to investigate other alternatives.

Ultimately, Ronald decided that a life settlement broker, who would contact multiple companies to maximize the purchase price, would be his best option. After extensive research, he chose Welcome Funds. Welcome Funds conducted a transparent auction securing a total of 22 offers. In the end, Ronald received a check for $64,800, 548% more than the offer extended by the direct buyer!

Policy's Insured	Male | Age 69
Health Status	Fair
Policy Type	Universal Life
Face Amount	$300,000
Annual Premium	$21,442
Surrender Value	$749

Life Settlement Payout $64,800

Margie purchased a 20-year level, convertible Term life insurance policy at age 48 to provide her daughter with financial security. Twenty years later, the term premium was set to increase dramatically and Margie's family could not afford to maintain the term life policy. Margie decided to explore a life settlement after seeing a TV commercial. She contacted one buyer directly, called a life settlement provider, but felt the $20,000 offer she received was low given her deteriorating health.

Thankfully, Margie reached out to Welcome Funds to obtain a second opinion. Welcome Funds conducted a transparent auction securing a total of 16 offers from multiple life settlement providers (buyers). In the end, Margie was paid $54,000, a 170% increase compared to the offer she received initially, and was able to assist her daughter with a down payment on a new house.

Policy's Insured	Female | Age 68
Health Status	Fair
Policy Type	Term Life
Face Amount	$500,000
Annual Premium	$23,880
Surrender Value	$0

Life Settlement Payout $54,000

Jerry purchased a $500,000 Universal Life policy seven years ago to provide his wife with “peace of mind.” Unfortunately, he could no longer afford the premium payments and contemplated letting the policy go. Jerry’s wife saw a TV commercial from a direct buyer, called a life settlement provider, about selling a life insurance policy for cash.

Jerry decided to call the direct buyer and after waiting several months, he was offered $30,000 for his policy. Jerry was skeptical and thought the purchase price was low given his age and health history. He then contacted Welcome Funds, “just to be sure.”

Welcome Funds conducted a transparent auction securing a total of 10 offers. In the end, Jerry and his wife received a check for $100,000, 233% more than the offer from the direct buyer!

Policy's Insured	Male | Age 78
Health Status	Fair
Policy Type	Universal Life
Face Amount	$500,000
Annual Premium	$20,794
Surrender Value	$13,794

Life Settlement Payout $100,000

A small business was filing for bankruptcy and its assets were being reviewed. The company’s financial advisor helped the partners identify the value, which they did not know existed, contained in its key man life insurance coverage. The advisor recommended that Welcome Funds appraise the policy. The business decided to maintain the coverage so that the life insurance policy could be sold as a life settlement, instead of letting it lapse for $0.

The proceeds from the sale of the life insurance policy paid off creditors and finalized the bankruptcy settlement. The partners were able to address their much needed liquidity needs and move on with their lives.

Policy's Insured	Male | Age 77
Health Status	Fair
Policy Type	Universal Life
Face Amount	$1,500,000
Annual Premium	$74,000
Surrender Value	$0

Life Settlement Payout $187,000

After seeing an ad from a direct buyer on TV, Dave was surprised to learn that his life insurance policy could be sold for a cash payment. Dave contacted the direct buyer who offered him $43,000. Before proceeding with that offer, Dave contacted his CPA to see if this was in his best interest.

The CPA recommended he receive a second opinion and contacted Welcome Funds. Dave quickly learned that several other buyers were willing to extend offers on his policy as well. Thanks to the auction platform of Welcome Funds, Dave received almost double the amount he was initially offered by the direct buyer, thereby maximizing the value of his policy.

Policy's Insured	Male | Age 88
Health Status	Fair
Policy Type	Universal Life
Face Amount	$300,000
Annual Premium	$36,000
Surrender Value	$0

Life Settlement Payout $81,005