Your client’s life insurance policy may be the most valuable asset they own.  

There are many reasons to value an existing life insurance policy - the original need may no longer exist, they may need to eliminate expensive premium payments, or they just need some additional liquidity to help with medical costs and retirement needs. The policy could be worth much more than the cash value.

A life settlement is the sale of an existing life insurance policy for more than the cash surrender value and less than the death benefit.  

PRACTICE TIP: Add the life settlement conversation to your planning discussions by asking clients, "When was the last time you had your life insurance policy appraised or valued?" Never recommend your client surrender, lapse, or materially change a policy without first checking for life settlement value.

Common life settlement planning scenarios:  

1. Funds needed for LTC (Long-Term Care) expenses - At age 80, Maria moved into a long-term care facility, relying on her adult children to help pay her LTC expenses. She sold her policy and used the proceeds to relieve the financial strain on her adult children, who had previously sacrificed their own planning needs to fund her care. Maria said, “For the first time in years, I feel like I have my dignity back.”  
2. Running out of money in retirement - At age 87, Carlos was living longer than expected and running out of money in retirement. Escalating premium payments were becoming too much of a burden to maintain and draining cash that could be used for other needs. “The life settlement gave me the ability to maintain my lifestyle in retirement.” 
3. Retiring business owner - James was negotiating the sale of his business and discovered that his term policy owned by the business could be transferred to him. Once he became the owner of the policy, he explored a life settlement. “My wife and I now have more money to enhance our retirement lifestyle.”  
4. Policy no longer needed - Judy and her husband (now deceased) had been making premium payments on their life insurance policy for over 30 years. Over time, the original need for the policy no longer existed. “I was able to uncover additional value over the cash surrender value. At my age, found money is a blessing.”  
5. About to surrender their policy – Mike and Sharon were about to surrender a life insurance policy they no longer needed. “Talk about a win-win! We not only eliminated annual premium payments, but we also received a large cash payment from the life settlement.” 

Who has the best chance of qualifying for a life settlement?  

def: (ash-er) "do what is right and you will be blessed"

Ashar Group is a nationally licensed life settlement firm that protects the best interests of policy owners by creating a competitive policy auction to deliver the best value to the seller. Ashar Group does not sell life insurance, manage assets, or purchase policies. We are an independent resource for fiduciary advisors and their clients specializing in life insurance valuation for planning purposes.