When was the Last Time You Reviewed Your Clients’ Life Insurance Policies?
The result of a policy valuation might be that the policy is performing well and should be maintained. Or you may find that the policy is worth far more than you previously thought and your client can benefit from a reallocation of those assets through a life settlement. In either case, it is a win.
As you meet with your clients, consider sharing the following points about life settlements:
- Term policies frequently expire with no claims being paid. A policy valuation will determine if your client can recoup a portion of the premiums paid prior to the policy expiring through a life settlement.
- For clients experiencing liquidity issues, new options exist that make it possible to maintain a portion of their coverage while eliminating future premium obligations.
- Ask your client why they purchased the policy. If those needs have changed or they no longer need the insurance, a policy valuation is a quick and easy way to ensure they are making an informed decision in light of all available options.
- Policies that have traditional financing and need additional collateral should be reviewed. A policy valuation can help your clients decide if they should continue financing or if they should sell their policy and repay the loan.
To find out more about policy valuation, contact a Coventry team member at 877.836.8300.