Would your client deliberately abandon a piece of prime real estate they owned? Of course not. Yet, with a majority of seniors dropping their life insurance without checking for SMV®, secondary market value, $92 Billion of term policies available on insured 65 and older today could be vastly underutilized.
And the numbers keep growing. The total life settlement market potential is expected to grow from $114 billion in 2014 to more than $140 billion in 2018, according to Conning Research & Consulting 2012. The following case study is just one of many examples showing the vastly untapped potential of the secondary market:
Insured: Male, age 74
Type of Insurance: $1M Term – Convertible to UL
Listed as $0 on the balance sheet
Annual Premium: $35K
Projected Median Life Expectancy: 120 months
Secondary Market Value: $175K
For many reasons, offering a secondary market valuation not only helps your clients meet both short-term and long-term monetary obligations, but it also offers CPAs, M&A firms and Business Attorneys protection against liability and the potential for a damaged reputation. get a secondary opinion® of the potential value of your client’s policy at https://ashargroup.com/quiz/
