Keep, Sell or Surrender?Keep, Sell or Surrender?

Over time, the law as well as a client’s circumstances, goals and objectives change. Often, a client feels that life insurance is no longer needed and considers surrendering the policy for its cash surrender value (CSV). But, is that the right decision? At that time, perhaps the best advice you can give your client is, “Hit the brakes!” Many times, it’s not that the client doesn’t need insurance, it’s that he doesn’t like paying for it. Life insurance is an extremely complex financial vehicle that can have an implicit value well in excess of the CSV. The goal for the client’s life insurance, legal and tax advisors is to help the client make informed decisions whether to protect, preserve or, if appropriate, harvest that implicit value.