In another situation a 77 year old female wanted to give a large donation to her favorite charity. She wanted to turn over one of her insurance policies. The charity was concerned about the premiums and their ability to pay them as they were strapped for cash. The charity also need the cash now and could not wait until the insured died to collect their payment. With the advise of our staff at Cambridge Settlements, and her financial advisor, she obtained a life settlement . Both the charity and the insured benefited from this decision. The insured was able to take a tax write off and she did not have to pay a gift tax and her favorite charity received a large cash donation.

A gentleman was recently diagnosed with liver cancer and knew his chances of survival were not as great as he would have liked them to be. He owned quite a large insurance policy and came to us to see if we could in some way assist him. He was not married and did not have to concern himself with providing for a wife and children. His medical bills were covered because his employer has supplied him with excellent medical coverage. Someone had told him about experimental treatments that were not covered by medical insurance and he was interested in such treatments. By selling his policy, Cambridge Settlements was able to negotiate a substantial settlement on his insurance policy, there by giving him money for his experimental treatments with some left over.

In another situation, a client of Cambridge Settlements came to us because at more than 70 years of age, a term life insurance policy of his was at the end of the term. The policy premiums would now increase greatly because of his age, and therefore he was thinking of letting the policy lapse, but was first checking his alternatives. The term policy has no cash value if surrendered and no equity, so allowing it to lapse would reap nothing. However, we purchased the policy, giving the previous owner a lump sum amount of money and he was also happy to eliminate the monthly premiums.