attorney | cpa | banker | trustee
Clients rely on from trusted professionals to provide objective guidance and recommendations. Many times you are required to make decisions that are in your clients' best interests during an emotional time in their life. We understand the importance of serving your clients, protecting your reputation, and growing the assets of all parties.
Prior to a regulated and transparent Secondary Market, there were limited options when determining how to value, transfer, or exit a client's life insurance policy. The Institutional Secondary Market has shifted that paradigm and changed the conversations with clients. More advantageous options may exist to not only protect the wealth of a client, but to grow it beyond one generation. By simply integrating the critical step of life insurance valuation, opportunities to generate significant and short-term liquidity may become possible. Imagine if your client was able to generate a lump sum that enabled them to allocate funds to other areas of their financial plan.
Policies owned in ILITs account for over 50 percent of the policies we review. The statistics are staggering regarding the amount of insurance in trusts that have been ignored or underfunded. A common scenario we encounter is an underperforming life insurance policy that suddenly needs premiums or it could be in danger of lapsing. This results in an expedient exercise to decide what to do next - to fund or not to fund.
get a secondary opinion®
Is the original purpose for the policy still valid? Does this policy have more value than that stated in the contract? Ashar Group provides a system for analyzing, discussing, and documenting the attributes of your clients' policies. Situations such as these can be avoided including a proactive step into your existing process, the Secondary Market Valuation. Regardless of the result, you have the ability to document the client's file accordingly, clearly demonstrating that all options were explored.
Professional advisors request a Secondary Market Valuation to ensure they are making the most accurate recommendations. In fact, many consider this process as a way to limit liability and exposure, while performing a valued service to their clients.
Historically clients have always had their assets and property appraised. Would a client ignore valuable real estate, artwork, or jewelry? Life insurance policies are both assets and property that may have a Secondary Market Value that greatly surpasses the cash value. How will the client know what it’s really worth if they do not have it appraised? Would there be liability if a policy was surrendered or lapsed that had a Secondary Market Value of 10-20-30% of the overall death benefit? What if their life policy was being transferred for fair market value? The Secondary Market Valuation process determines that value for you and your client. How would you determine that value?
Operating within the trust and estate planning markets can be complex. The need to consistently monitor and rebalance the components of a client’s overall plan can involve collaboration among many professionals and multiple disciplines. The Ashar team would be honored to assist you as your Secondary Market specialist. We have worked on thousands of clients' situations that involved multifaceted circumstances for families and business owners. Our experienced team is available to provide the support you expect in managing your clients' experience.