Veriti Consulting is one of few firms in the U.S. with the expertise to provide policy valuations for taxable events and financial statement reporting purposes. The life insurance policy valuation reports Veriti Consulting produces are completed by qualified appraisers as defined by the Internal Revenue Service and adhere to the industry standards of the valuation profession. A life insurance valuation report prepared by Veriti Consulting’s Charlotte, North Carolina office considers factors including:
- Analysis of Relevant Discount Studies
- Current Policy Values and Rates
- Face Value of Policy
- Insured’s Age and Health Factors
- Insured’s Life Expectancy
- IRS Regulations and Procedures
- Life Settlement Studies
- Past and Future Premium Payments
- Specific Policy Analysis
- Type of Policy
Veriti Consulting prepares life insurance appraisals for taxable events, financial statement reporting, and other accounting events. We have completed valuations for hundreds of life insurance policies, including some of the largest policies issued by various insurance companies. Contact Veriti’s Charlotte, North Carolina office at (877) 520-1280 or by email to learn more about our life insurance policy valuation services.
Life Insurance Policy Valuation FAQs
1) Why can’t my insurance agent value my life insurance policy?
While insurance agents provide annual statements and specific policy internal values, in most instances they will not be considered “qualified appraisers,” as defined by the IRS. A qualified appraiser, in general, is someone who is experienced and credentialed in the valuation field, and spends a significant amount of time preparing valuations as their occupation. It also requires the individual holds himself or herself out to the public as a valuation expert.
2) Why do I need my life insurance policy valued?
Depending on the circumstances, many gifts or transactions involving life insurance policies, including policies held in qualified plans, need to be reported to the IRS. The fair market value of the policy must be established at the time the transaction occurs. If an audit of the tax return occurs, the valuation report will substantiate the value reported.
3) How is a life insurance policy valued for “fair market value” purposes?
Similar to other valuations for business interests or other assets, an appraisal prepared by Veriti Consulting will consider all three standard valuation approaches. These approaches will include an asset, income and market methodology.
Contact Veriti Consulting at (877) 520-1280 or email us to learn more about how to get started with a certified life insurance valuation in Charlotte NC.
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