What is the missing piece in life insurance policy reviews?

INFORM YOUR CLIENTS:

"I've added a Fair Market Value and Longevity component to life insurance policy reviews."

LIFE INSURANCE: FROM PROTECTION TOOL TO PLANNING ASSET

Just as real estate or other assets are regularly appraised, life insurance policies should be reviewed to determine their current Fair Market Value (FMV). Understanding the policy's value and the duration it will require funding is crucial for making recommendations that support informed decisions about retention, replacement, or sale. Without this insight, policy reviews are incomplete, leaving clients exposed to missed opportunities and advisors exposed to liability.

A POLICY REVIEW WITHOUT FMV IS LIKE A BALANCE SHEET WITH MISSING NUMBERS

• Don't allocate premium dollars to policies that are no longer needed
• Don't let policies that could have significant value lapse or be surrendered
• Don't create blind spots that can lead to liability and missed opportunities

• Do strengthen policy reviews that uncover liquidity that can be used for today's planning
• Do empower clients with data that supports informed decisions about retention, replacement, or sale
• Do position yourself as the trusted advisor who delivers tailored planning solutions that meet clients' evolving needs

FAIR MARKET VALUE (FMV): According to IRS guidelines, FMV is the price at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell, and both having reasonable knowledge of relevant facts. Life insurance is an assignable asset that can have a fair market value far exceeding what the carrier will pay in surrender.

LIFE SPAN PLANNING: The first baby boomers turn 79 this year! With more clients living into their 90s and beyond, retirement planning can't simply rely on standard longevity tables. Changes in health could affect the FMV of a policy. A customized longevity analysis enables you to make more tailored recommendations that maximize policy exit options.