Fair Market Value of Life Insurance Policies
Individuals, financial advisors, accountants, and lawyers may wish to obtain a valuation of a life insurance policy for reasons such as
· ownership transfer (for tax planning or for charitable giving)
· estate planning
· marriage breakdown (property valuation and equalization)
It is critical that the valuator be qualified to prepare these valuations, and scrupulously objective. Valuation reports may be reviewed or audited by the Canada Revenue Agency.
The DJA actuaries have worked in the life insurance industry. We prepare valuation reports in respect of participating (“par”) life insurance, whole life policies, term policies (including “term to 100”), and universal life policies.
To prepare a valuation, we will need:
· the purpose for the valuation
· the desired valuation date
· a copy of the policy contract and the most recent statement
If the life insured is in poor health, we can assist you in obtaining an expert medical opinion concerning life expectancy.
Copyright 2012, Dilkes, Jeffery & Associates, Inc.
DILKES, JEFFERY & ASSOCIATES, INC.