Companies are recognizing the need to protect themselves with more than just life insurance for their owners and key employees. Critical Illness insurance policies, which protect against extended periods of absence due to an unforeseen illness, are becoming increasingly popular over the last few years.
GBL can perform Fair Market Valuations (FMVs) on critical illness policies similar to those performed for life insurance products. More info on our FMVs of life insurance can be found here.
As the company’s needs change over time, ownership of the policy may need to be transferred between the corporation and the individual insured. An valuation of the CI policy can be prepared to ensure the appropriate value is reflected in the transaction.
If a corporation owns CI policies, the market value of these policies should be included when conducting a complete valuation of the corporation’s assets. By valuing the CI policies, this will ensure the appropriate market value is assigned to the asset.
As with all marital assets, a fair value needs to be determined in order to account for the total marital property subject to the separation. If a couple owns CI insurance policies, having a valuation prepared will ensure the appropriate value is assigned to these policies on separation of assets.
