Considering the financial landscapes many clients are navigating, here's an everyday success story that underscores the importance of valuing assets, particularly life insurance, in crafting comprehensive planning solutions.

We recently worked with a client facing the challenge of an underfunded life insurance policy held within an Irrevocable Life Insurance Trust (ILIT). The policy, once thought to be a cornerstone of their estate plan, was underperforming and had become a source of financial strain due to rising premiums.

Challenges Faced:

1. Underfunded Policy: The policy's cash value was dwindling, jeopardizing its ability to meet the intended objectives within the estate plan.
2. Escalating Premiums: The client was grappling with the burden of escalating premiums, causing financial stress.

Solution Implemented:

1. Thorough Evaluation: We conducted a comprehensive evaluation of the policy, considering its current cash value, performance, and alignment with the client's evolving financial goals.
2. Life Settlement Exploration: Recognizing the need for a strategic solution, we explored the option of a life settlement. This involved engaging an independent life settlement seller's representative to facilitate a competitive policy auction.

Results Achieved:

1. Optimized Value: The life settlement process resulted in the client receiving a higher cash value for the policy than its current surrender value.
2. Financial Relief: By selling the policy, the client not only achieved liquidity but also alleviated the burden of future premium payments.

Impact on Comprehensive Planning: The funds from the life settlement were strategically reinvested, contributing to a more robust and diversified financial portfolio. This, in turn, allowed for the reevaluation and adjustment of the client's overall estate planning strategy.

This success story highlights the transformative impact of valuing and strategically managing life insurance assets within the context of comprehensive financial planning.

To find out if your client's policy may qualify for a life settlement, try our probability calculator.

Ashar Group is a nationally licensed life settlement firm representing 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, management assets, or purchase policies. We are an independent resource for fiduciary advisors and their clients specializing in life insurance valuation for planning purposes. Contact us today.

Every day at Ashar is a busy one—and we like it that way! Still, we have so much going on here that I savor the times I can snatch a few minutes to walk to buy a healthy sandwich for lunch, like today. This afternoon, I was walking back to our office when I spotted something green on the sidewalk. Hello, Andrew Jackson. Surprised at my good fortune, I tucked the bill into my pocket and forgot about it. When I found it again at the end of the day when I reached into my pocket for my keys, it was a nice reminder of that good moment.

Isn’t it a great feeling when you find an unexpected $20 bill on the sidewalk? Imagine how much better it would feel to find an unanticipated $2 million. While it sounds crazy, that’s exactly what happened to Robert*, a recent client of ours. (more…)