Over the last for decades, life insurance has endured countless changes. This means that if you’re helping seniors with their financials, an analysis of the FMV of all their assets is essential, and that includes life insurance. The value of life insurance could exceed that value of any other property your client owns. But ironically, policy owners often forfeit policies back for nothing close to its worth when they would never sell their property for less than its value.
There has been a definite increase in seniors 80-98 owning underperforming life insurance policies due to the heavy amount of changes in the industry. These policies are typically low in cash value because of low interest rates that have remained for so long, impacting the life insurance performance.
Premiums are escalating as a result and the determination of FMV can open up new planning options. A proper analysis of health conditions and policy metrics by a life settlement broker enables financial professionals to factor FMV into the planning puzzle. Sometimes the decision is made to pay more premiums and keep the policy, and sometimes your senior client decides to sell the policy for fair market value, but regardless, when you are backed with the right information, you can provide counsel that adds significant value to their overall plan.
Contact an independent life settlement broker for a fair market value appraisal, if you have a client that is needing an escape from a life insurance policy.
For many policy-owners, education is the key to making decisions that will maximize their assets and provide for their financial goals. To learn more about life settlements and how to offer this valuable option to your clients, visit genesislifesettlements.com or email us directly to talk one-on-one with a Genesis advisor.