The secondary market for life insurance was responsible for transferring more than $12 billion in face value in 2008 according to industry estimates. Every one of these transactions began with a simple policy valuation recommended by a proactive advisor.
Policy valuation is a powerful tool. It gives advisors the ability to accurately assess the performance of a life insurance policy. More important, it is a great conversation starter. By simply asking the question “What is your policy worth?” advisors can open an entirely new dialogue with clients. A dialogue that can lead to significant new business.
Begin by pointing out to your client that a policy valuation is a simple and non-binding process. All that is required is a completed application, along with medical records and carrier illustrations. There is no cost, nor is there any commitment on the part of the client. Simply put, there is nothing to lose and, potentially, much to gain.