Health-adjusted life expectancy
to age 85
24.5 yr remaining · current age 60
SSA baseline: age 82
Policy on file
$500,000 WL
Northwestern Mutual · A++
Marketability read
Unlikely Candidate
Score 37/100
This WL policy scores 37/100. The expected settlement offer (~$10,000) is below the cash surrender value ($165,000), so surrendering the policy would net roughly $155,000 more than selling it. A life settlement is unlikely to be the best liquidation path here — compare against a straight surrender and 1035 exchange first.
How to read this sample
- Cards above — the client's mortality read, policy on file, and marketability score.
- Offer range — three DCF valuations at different buyer IRR targets. The mid is the expected offer; the low/high are the honest range.
- Strategy grid — sell, hold, surrender, and alternates ranked by after-tax NPV. The "Best" badge is the top ranked strategy.
- Condition impact — isolated LE deltas per diagnosis so you can see what's actually driving the mortality picture.
Settlement offer range
DCF valuation across three buyer pricing scenarios, net of $15K provider fees + 1% face + 20% broker commission.
Conservative Market
$10,000
2.0% of face
Expected
$10,000
2.0% of face
Competitive Market
$10,000
2.0% of face
Strategy comparison
Ranked by after-tax NPV at the configured discount rate.
| Strategy | NPV | After-tax NPV | IRR | Notes |
|---|---|---|---|---|
| BestSurrender for Cash | $165,000 | $165,000 | - | Surrender the policy for $165,000 in cash |
| 1035 Exchange | $157,690 | $157,690 | 4.1% | Tax-free exchange to annuity (~$11,421/year for ~24 years) |
| Reduce Paid-Up | $135,080 | $135,080 | 4.7% | Convert to paid-up policy with $475,000 face amount, no further premiums |
| Life Settlement | $10,000 | $10,000 | - | Sell the policy for an estimated $10,000 |
| Hold Policy | $9,228 | $9,228 | 1.7% | Continue paying premiums and retain the death benefit |
This is a sample.
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