Using Life Settlements to Tap the Value of Hidden Assets

CPA Journal, TheVol. 74 Nbr. 8, August 2004

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Summary


In the past, the owner of a life insurance policy who no longer wanted to retain the contract had two options: allow it to lapse or surrender the policy. A new option can tap the hidden value of these policies. Under the right circumstances, life settlements provide value in excess of the cash value built up within these policies. In many respects, it works like found money for a company or individuals who might otherwise simply walk away from a policy rather than continue to pay premiums.

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Using Life Settlements to Tap the Value of Hidden Assets

No corporate assets are more likely to be lost, left unaccounted for, or simply assumed to be valueless than life insurance. Often purchased as an asset of a corporation, ...

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