Key Man Settlements

Corporate Owned Life Insurance/Trusts & Estates

What are Key man Settlements?

Key man settlements are for Individuals and corporations that have life insurance policies in trusts and estates that are no longer needed or just not cost effective. There are numerous reasons to take part in life insurance settlement. Some include:

  • Beneficiary has been outlived

  • Estate Size has changed

  • The estate is being passed on to the beneficiaries through an estate planning method and the life insurance once used to pay estate taxes has outlived its use.

  • A life insurance policy required because of a small business loan is no longer needed because the loan is paid off or the key man has retired.

  • Amount of coverage is no longer needed

  • A key executive has retired and the coverage is no longer needed. (Getting back the premiums paid on a key man policy is an effective way to fund coverage for his/her successor.)

Benefits of a Key man settlement

  • Eliminate high premium payments

  • Lump sum of funds

  • The cash received for policy plus saved premium payments may be better utilized

  • Alternative investments are desired

  • Your quality of life and standard of living can be enhanced

  • Give money to your children and watch them enjoy it

Contact Ideal today to see if you or someone know qualifies for a key man settlement. You may also request more information about key man settlements using the form on the homepage. Professionals Welcome!

Case Study

Mark was a seventy-four year old executive with some health issues. He had just recently retired and found out he had a ten million dollar insurance policy from his corporation. The premium payments where in excess of forty thousand a year and he did not need the insurance. Ideal was able to get Mark $6.3 million dollars for the policy he was ready to let lapse. Mark used the funds to secure the financial future of his children and grandchildren. He was also able to purchase a beach house, boat, and other toys to enjoy during his retirement.


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