Do you have an insurance policy you no longer want or need? DON’T BE TOO QUICK TO CANCEL IT!
Here’s how one client turned a $274K value into something far more valuable – both for himself and his charity1
Ken had $500K of cash invested in a $4M Joint Last to Die policy. He felt he no longer needed it for his planning and wanted to cash it out. We advised him not to act too quickly before we could see if we could create a better result.
We had the policy valued by a professional actuary.
Fair Market Value – $2.3M!
Ken donated his policy and received a tax credit of over $925K, offsetting a significant capital gains tax on property he sold.
It also meant his charitable foundation would have a guaranteed receivable of $4.5M!
Before Planning – Net to Ken – $274K
After Planning – Net to Ken – $925K & Net to Foundation – $4.5M
Total benefit of $5,425,000 versus $274,000
A result not thought possible!
DON’T BE TOO QUICK TO CANCEL LIFE INSURANCE POLICIES. YOU COULD BE GIVING UP SIGNIFICANT VALUE!
