A 53-year-old male government attorney was diagnosed with multiple myeloma in 2007. His life expectancy was 2-3 years. He had a term policy, $400,000 face amount, which he settled for $212,000. He used the proceeds to pay off his mortgage and his daughter’s college debt. He retained a separate $750,000 policy to cover the future needs of his family.

A 51-year-old female was diagnosed with metastatic cervical cancer in 2007, and given a life expectancy of 7-14 months. She had a $250,000 universal life policy, which was settled for $182,500. She used the funds to pay for alternative treatments not covered by her health insurance.

A 52-year-old male was diagnosed with pancreatic cancer in 2007. He had a life expectancy of 6-14 months. This gentleman needed funds to keep his family-owned business running 1-2 years through the poor economy until the family could get a better price for the firm or transition so that they could keep the business and hire new leadership to run it. The solution was to split his $5 million key-person policy, settling a $2.5 million policy for $1.87 million, and retaining $2.5 million in life coverage for his family.

A 53-year-old federal employee in Ohio was diagnosed with amyotrophic lateral sclerosis (ALS or Lou Gehrig's disease) in January 2009. His wife had predeceased him in 2006 and the focus of his life was their only child, a son, daughter-in-law and a grandchild. After his diagnosis, his dream became purchasing a new home that was large enough for his entire family so he could spend his remaining time close to them. He fulfilled his dream by selling his Federal Employee Group Life Insurance (FEGLI) policy. With a life expectancy under 24 months, the transaction qualified as a true Viatical Settlement under the IRS Code, thus making the proceeds free from Federal Income Tax. He was able to spend his last days in his new house, surrounded by those he loved.

Two young business partners purchased a business from the original owners, three brothers aged 69, 73, and 77. The three brothers each had company owned life insurance (COLI) policies of $1 million each or $3 million total. The cash value of those policies was less than $20,000 each. Because these were COLI policies, the original purpose for the policies (a buy-sell agreement) would no longer exist and the brothers no longer needed the coverage. The solution was to settle two of the three policies ($2 million face value) for $540,000. This unforeseen capital was used by the new owners to expand the business.

A businessman aged 74 had held out selling his business because he thought all offers on the business would net him approximately $1 million less than he needed to retire. Still, he had an obsolete key-person policy of $5 million, with no cash value. The solution was to convert the term policy to a universal life policy and settle it for $1,010,000. Once this settlement was added to the equation, he transacted the sale of his business and changed an outdated asset - this life policy - into the additional cash he needed.