TAKEAWAYS FROM HECKERLING 2024 Life Insurance Valuation and Life SettlementsSESSION: "That Life Insurance Policy May Be Worth More (Or Less) Than You Think! By: Donald O. Jansen; Lawrence Brody; Mary Ann ManciniOur Summary: Life insurance is an asset. The current health of the insured could significantly impact the fair market value, above and beyond the cash value. The product and the planning situation can influence the valuation. As Larry Brody stated, life insurance should be an actively managed asset vs. a "buy and hold". Mary Ann Mancini discussed the complexity of valuation with modern day products.
How do you make a planning recommendation for any asset before knowing what it is worth? Life insurance is no different.
DOES IT QUALIFY FOR A LIFE SETTLEMENT?
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. The funds from a life settlement can help pay for today's planning needs - like retirement or caregiving.