About Reverse-Life Insurance® > Keyman Insurance Application
Keyman Insurance Applications
Need for Keyman Insurance.
Christian Stanley services the insurance liquidation needs of firms
involved in M&A, business brokerage, or corporate restructuring
activities. Owners of businesses often will hold keyman life insurance,
primarily because commercial banks require such coverage to hedge lines
of credit, debt consolidations, and business loans. When the firm is
sold, acquired, or merged, the keyman life insurance policy becomes
displaced.
Market Value.
That is to say, when a business owner decides to sell the business, the
keyman policy does not serve its original economic function because the
former executive insured by the policy is no longer with the firm.
Statistically, we know that 90% of these policies are simply allowed to
lapse, or are surrendered for their cash value. The cash value of an
insurance policy does not indicate the real economic value of the
policy because it is a one-sided offer from the insurance carrier.
In contrast, Christian Stanley is a global marketplace where
policyholders are afforded the benefits of receiving multiple bids from
bulge bracket participants in the secondary market for life policies,
rather than just relying on the cash surrender value offered by the
originating insurance carrier. Understanding the life settlement option
is integral to capital valuation in the 21st century.
