Insured:  Male 74 years old
Existing Policy: $4,000,000 Term Life
Amount Paid To Insured: $315,000
Amount Paid to Advisor: $26,975.
Amount Paid to Advisor For Term Conversion: $75,000.

Situation:  The term policy was nearing the conversion deadline. The insured was not willing to pay for the expensive premiums required once the policy was converted. The insured was going to let the policy lapse. The agent made two commissions and maintained residuals on the converted policy.

Insured: Male 81 years old
Existing Policy: $5,700,000 Universal Life
Amount Paid To Insured:  $910,000
Amount Paid to Advisor:  $100,000

Situation: This policy was owned by the client’s son.  The father paid the premiums for many years.  When the father decided to stop paying for the policy, he passed that responsibility on to his his son, who was the Beneficiary. The son determined that it was better to sell the policy for a lump sum and free himself from the premium obligation.

Insured: Female 88 years old
Existing Policy: $2,000,000 Universal Life
Amount Paid To Insured:  $350,000
Amount Paid to Advisor:  $100,000

Situation: This policy was trust owned and the insurance was no longer needed.  The insured had a second policy that was adequate to cover her estate taxes.

Insured:  Male 66 years old
Existing Policy: $2,730,000 Universal Life
Amount Paid To Insured: $466,000
Amount Paid to Advisor: $35,420.

Situation: After 40 years of marriage the Advisor’s client became divorced, and had no further use for his Universal Life policy. His children were fully grown and economically independent.