Products & Services

Fair Market Value Life Insurance Policy Actuarial Valuations

What is your Life Insurance policy worth?

Thinking of selling or donating a life insurance policy? Our Actuaries will calculate the FMV (Fair Market Valuation) and provide an official Actuarial Certificate and report that will support the transaction with the CRA.

We have over 40 years of valuation experience and we use approved methodologies as specified by the Canadian Institute of Actuaries.

After the introduction of Term to 100 policies in the mid-70’s as well as the advent of the Universal Life concept, there is increasing awareness that insurance policies carry a market value that can exceed the cash value and that even term policies have value despite their lack of a cash surrender value.

If you are the policy owner, or an advisor, accountant or lawyer who is helping their client, please download and fill in this form for a free estimate of value. (Please note that these estimates are for client information only and will not be supportable with the CRA.)

Our actuaries will give you an estimate of value and if you wish to proceed a quote of our fee and any independent underwriting fees (if required.)

TT Actuarial’s philosophy is that a Life insurance policy is based on two promises: the life insured promises to make annual payments for as long as he lives and the insurance company promises to pay a lump sum on death. As time goes by, the value of the promised premiums decreases and the value of the promised benefit at death increases. If there is deterioration in the health of the life insured, this divergence accelerates.

Tax advisors have found that in some cases there can be a tax advantage to an individual who owns a life insurance policy and a company. In some cases the individual may be able to sell this life insurance policy to their company. The value of the insurance policy must be determined by an Actuary to be accepted by CRA.

The value is determined using actuarial mathematics and reasonable assumptions concerning future mortality, current health of the life insured and future returns.

If your advisor determines that this works for you, TT Actuarial will be pleased to calculate the value of the policies involved and provide a letter of actuarial certification.

Services include:

  • Actuarial calculations
  • Actuarial certification
  • Advisor consulting
  • Underwriting coordination