VSPI has recently closed a transaction in which the policyholder received over $800,000 more than the policy's cash surrender value. 

A Virginia business realized it was making expensive premium payments on a $5 million policy insuring the life of an executive that had retired several years ago.  The business was considering cashing the policy in for its cash surrender value when at the last minute it heard about our services at VSPI. 

With one phone call, VSPI determined that the business was making very large premium payments on a life insurance policy that it really no longer needed. The executive covered under the policy had retired and was no longer active with the business. With the executive's retirement, the policy's original use had become outdated, and the high premium payments were in fact a liability to the business.

Once VSPI discovered that the business had a valuable source of capital, we prepared and processed the essential documentation needed to obtain a valuation of the policy. Working with VSPI, officers of the corporation quickly gathered the application, verification of coverage and medical release forms. Within weeks, VSPI had processed the information and secured a very lucrative buyout for the business. 

Regarding the policy itself, it was a split dollar whole life policy with a face value of $5 million. There were, however, loans secured by the policy in excess of $750,000. The net death benefit, after deducting for the loans, was $4.25 million. The cash surrender value of the policy was $1.2 million. 

VSPI negotiated an exceptional purchase price for the policyholder of over $2 million, thus giving the business $800,000 more than it would have received had it simply surrendered the policy for its cash value. Further, once the business sold the policy, the business did not have to make any more premium payments on the policy. Therefore, not only did the business receive more cash for the policy, but it also absolved itself of the liability of making the burdensomely high premium payments. 

All of this occurred at no cost to the business. 

Call VSPI today and let us appraise your policies at no cost.