$109 BILLION
The cash surrender value of BOLI policies in the U.S. as of June 30, 2007
Source: Michael White & Mullin
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Example Life Settlement
Executive Insured:
75Year Old Male
Policy Value:
$3,000,000
Cash Surrender Value (CSV):
$0
Gross Offer for Policy:
$840,000
28% of policy value
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Your company could be eligible right now for a life settlement!
Call us for a quick evaluation. It’s free and there is no obligation!
Call toll free
800.492.5186
Corporate Policy Owners
Profit Now or a Hedge Against the Future. Why Not Have Both?
For years, companies and banks have owned life insurance on essential employees. In the corporate or general business arena, these are commonly known as corporate-owned life insurance (COLI) or key man policies. In banks, they are referred to as bank-owned life insurance (BOLI) policies.
Although the specific reasons for purchasing COLI or BOLI policies vary among organizations, there is always one reason common to all—they are to hedge against some future expense. With some cases, it is deferred benefits. With others, it is to cover losses associated with the death of an owner, key employee, or the buyback of shares of stock.
When Your Company's Needs Change
When your board of directors made the decision to invest in that COLI or BOLI, it considered certain assumptions regarding the company and the foreseeable business environment. As prudent business executives, however, we know that events seldom unfold exactly as anticipated in our forecasts. Times change and so do our needs.
Now is the time to reassess your COLI, key man, or BOLI needs. With cash settlements ranging between 10% and 40% of the face value of policies, the possibility could exist for your company to have both—profitability today and a hedge against tomorrow.
When representing sole proprietorships, partnerships, corporations, or financial institutions, CharlesEdwards works alongside the client’s legal, tax, accounting and benefits professionals to ensure the client receives the best available value in selling their policies.
Staying the course requires guidance. We’re here to help.
Call us for a free evaluation of your policies. Our executive team is ready with the guidance you need! Call 800.492.5186. A sale can be completed in as quickly as 8-12 weeks.
Policies Eligible for Life Settlement
Policies on current and former employees and board members meeting these guidelines will be considered for representation by CharlesEdwards:
- The insured must be at least 65 years of age
- The face amount of the policy is between $250,000 and $100 Million
- The average life expectancy of the insured must be between 24 and 168 months
- The insured is not terminally ill
- The policy is beyond the two-year contestability period and must be transferable
- The policy type is universal, convertible term, survivorship, whole life, key man, Buy/Sell, COLI, or BOLI
- The policy was issued by a U.S. life insurance company
Personal policies held by employees, directors, or family members may also be eligible for a life settlement. Learn More >
Under What Circumstances Should We Consider a Life Settlement?
- When the policies are not performing according to expectation
- Circumstances or employees have changed since the initiation of the policy
- Company profitability, capital, or liquidity needs a boost
- Capital, capital ratios, and profitability can significantly increase through a sale of the policy
- A one-time settlement/replacement strategy will generate current profits, reinstitute a hedge against future costs, and not violate sound investment principles or abuse of COLI/BOLI.
The taxability of COLI or BOLI life settlement proceeds varies according to the individual circumstances of the organization that owned them. The sale of a BOLI policy may also affect a financial institution’s status with its bank regulatory agencies.
Policy owners anticipating a sale of their policies are encouraged to consult with their tax and legal advisors regarding the impact a sale may have on their ongoing financial, operating and regulatory conditions.
FIDUCIARY DUTY COMES FIRST. ALWAYS.
CharlesEdwards conducts every transaction with the highest integrity and in the full light of day. In other words, when we say we are transparent, we actually mean it.
Before we begin representation, we have our clients review and sign our Life Settlement Agent Appointment that discloses all the terms of our representation, including all fees and commissions. That’s right, all fees and commissions.
There are never any hidden charges or surprises. All original offers along with commissions and fees are presented to our clients for their review.
First in fiduciary duty
Superior service
Fast execution
Low client commissions
We do all the work. Always.
That’s CharlesEdwards!
