Real-Life Successes

Case Example – June 2008

Charitable Organization in serious financial trouble, facing bankruptcy

Policy Face Value	$10,000,000
Annual Premiums to Maturity	$517,000 (or 5.1%)
Cash Surrender Value	$0.00
Insured Age	79
Life Expectancy Range	4.4 – 7 years
Gross Purchase Price	$3,930,000

Chart: Offer Negotiations by Round
*Note — limited competition due to state licensing requirements and constraints

In this example, Welcome Funds was able to help a charitable organization find funding it needed in a desperate situation. The organization was in serious financial trouble and facing the possibility of bankruptcy. The charity had received a life-insurance policy that had a face value of $10 million. The charity couldn't afford the annual premium payments of $517,000, and if the organization had allowed the policy to lapse, it would have had no value. Instead, the charity sold the policy.

As Figure 1 shows, Welcome Funds secured a final settlement amount of $3,930,000 — a lifeline to an organization that was worth saving. In addition, the donor got the added benefit of seeing the mission of his charity continue while he was alive.