Valuing a life insurance policy

For a senior, life insurance can now be considered an asset just like real estate or stocks and bonds. This is because there is an active secondary life settlement market that is willing to buy that asset. Understanding the market value of a life insurance policy is an important part of managing your portfolio. It's tough to decide whether you should sell or retain an asset unless you know its worth. 

Valuing a life insurance policy is a complex task but one of the first steps in the life settlement process. The main components in a valuation are life expectancy and policy and premium information. Your life settlement broker is the one who will put all this information together. One of the most widely used tools is called Milliman software and most brokers and investors use this product. You can be confident in valuations that are produced using this system.