To fund or not to fund, that is the question. Policies owned in Irrevocable Life Insurance Trusts account for over 50 percent of the policies we review at Ashar Group. 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.
The first order of business is to get a secondary opinion® of the potential value of your client’s policy here. If the policy appears to have secondary market value, then it’s important to answer the following types of questions: Is the original purpose for the policy still valid? Does this policy have more value than that stated in the contract? Specialists, like Ashar Group, provide a system for analyzing, discussing, and documenting the attributes of your clients' policies. You can add a proactive step into your existing process, by ordering an SMV®, Ashar Group’s proprietary 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 often request an SMV® (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.
get a secondary opinion® of the potential value of your client’s policy. Click the link below.
