The question was: Obtaining an appraisal of a client’s existing life insurance policy is an essential part of helping to decide whether to sell the policy in the secondary market. But how many times should appraisals be done when the contract has both guaranteed and illustrated values?

a) Once, using only guaranteed values
b) Once, using only the illustrated values
c) Twice–once using guarantees and once using illustrated values
d) Not an issue, because funders don’t deal with these policies

The answer is: c), twice, once using guarantees and once using illustrated values, according to Jack Bragg, FSA, ACAS, MAAA, actuarial consultant at Bragg Associates, Atlanta. This is among the crucial steps in the policy appraisal process that he outlines in an article he wrote for National Underwriter on the topic. See his article here: Life Policy Appraisals Create Opportunities For Advisors