The transaction process for determining a life insurance policy’s fair market value is very similar to a real estate transaction. Although there are some steps that need to be negotiated, the great news is that a health exam is not required to end a policy. get a secondary opinion® of the potential value of your client’s policy at www.ashargroup.com/quiz to determine if you should call a secondary market specialist to discuss digging deeper and gathering more information.
Pre-screening comes first: basic medical and policy information is analyzed and the potential market value is estimated. If the estimated value meets the client’s expectations, the decision can be made to move forward.
The insured does not have to go to the doctor. Medical records of the insured are collected from the last five years and a current illustration is obtained. If any new developments are uncovered by underwriting the case is re-priced.
At this point, a strategic Secondary Market Specialist would then facilitate the process to decide which third party life expectancy company to use (or multiple) and would then complete an internal analysis to interpret the information to confirm accuracy.
This is where your secondary market specialist shines. They explain the details, relative strengths and weaknesses of the buyers and any alternatives. Once the most suitable offer is selected, the secondary specialists negotiate any details. The offer is accepted in writing and negotiations close. Approved contracts are issued and a secondary market specialist like Ashar assists the insured, policy owner and advisor in the executing the documents.
Once the reviews and due diligence are completed, the lump sum to the policy owner is placed in a 3rd party escrow account, a change of ownership form to the insurance carrier is initiated and the seller receives the funds. Now, the previous policy owner begins to enjoy the next stage of their life.