Valuation of Life Insurance Policies - ASA Group

ADVANCED MARKETSBECAUSE YOU ASKEDThe following information provides a general overview of policy Valuation as well as addresses some of the most frequently asked questions we are asked about this material does not constitute tax, legal or accounting advice, and neither John Hancock nor any of its agents, employees, or registered representatives are in the business of offering such advice. It cannot be used by any tax-payer for the purpose of avoiding any IRS penalty. It was written to support the marketing of the transactions or top-ics it addresses. Anyone interested in these transactions or topics should seek advice based on his or her particular circumstances from independent professional of CONTENTS1. What is fair market value?2. What is the value of a life Insurance policy for gift tax purposes and estate tax purposes?3. What does interpolated terminal reserve (ITR) mean?

insurance policies were annual renewable term and whole life. Since then, new insurance products have been created — for example, universal life, variable life, guaranteed no-lapse universal life, and level term insurance (just to name a few) — that make it difficult to apply traditional ITR valuation principles to value these policies.

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  Life, Insurance, Lapse, Life insurance

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