Insurance is not only a property; it is also an important asset that can be worth a lot of money. The goal of owning an asset is to maximize its value. In the US and Canada, policy owners cancel more than 120 billions of dollar in insurance without having a clue about the value of their insurance as an asset. This is not the fault of the policy owner. This is the result of insurers restricting access to information in order to increase their margins of profits from these insurance lapses and cancellations. We want to change this. We want the value of insurance policies to go where it belongs; in the pocket of policy owners. This is why we are offering a free calculator to the public. What is the value of a life policy as determined by this calculator? It is called the Fair Market Value (FMV). The FMV is determined by calculating the replacement value of the life insurance. The best way to explain this is through an example:

Example: John is the policy owner of a T100 with a death benefit of $200,000 where premiums are paid for life and where there are no cash values. He took the policy at age 55 thinking it would be nice if his children could get a little something when he becomes an angel. The premium is $2,500 per year. He is thinking about cancelling the policy because his children are well off and there is no need for it anymore and he could use the premium savings. If he cancels the policy to save $2,500 annually; he will get no cash values from the insurer. Luckily he came across our calculator finding that the same policy would cost him a minimum of $12,500 annually if he was healthy and a lot more if his insurability was bad. The difference of $10,000 between the current premium and replacement premium results in a Fair Market Value of $100,000. Basically if he liquidates the T100, he will be giving away $100,000 to the insurer. Now that he knows about the value of his policy, he can look at various strategies from charitable giving to selling his policy to a third party in order to extract the $100,000 out of the policy for his own benefit.

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What is the FMV?

Life insurance is an asset and like any assets, it has many different values. The FMV of a life insurance policy is the amount that an informed third party dealing at arm’s length would be willing to offer to purchase the life policy in question.

Normally to determine the FMV of a policy, a policy owner would hire an actuary to do the valuation. Usually the process would start with a pre-evaluation which is a rough estimate of the FMV. The cost is $250 to $500. This estimate is then used to decide whether there are any benefits in ordering a full valuation which usually cost around $2,500.

Our calculator replaces the pre-evaluation which will save time and money ($250 to $500). iT provides an estimate of the value of the death benefit. However it does not include the value of any other guaranteed benefits such as interest guarantee, paid up additions… The values of such guarantees should be determined through a full evaluation.

Warning: It is documented that Insurers have threatened to end the career of insurance agents if they actively reveal to the consumer that their policy has a FMV while providing information and how to benefit from this FMV through a life settlement option. Therefore any information provided by insurers should be considered suspect.

To learn more about Life Settlement, we have written everything you need to know:

Can I sell my life policy anywhere in Canada?

Yes you can sell your policy anywhere in any provinces of Canada. In fact the right to enjoy a property such as life insurance is a right protected under the Charter of Rights. This is why there are NO laws in any provinces of Canada preventing Canadian policyowners to sell or enter into a life settlement. What the provinces can do to help insurers profit and steal the value of your policy is to prevent anyone from sollicitating you into entering into a life settlement. As a result, this prevents the establishment of an ORGANIZED life settlement market in Canada allowing insurers to dictate and control the economic value of your life policy. This applies to all provinces except Quebec, Nova Scotia and Saskatchewan. Insurers are working hard to convince these provinces into changing their laws in their favor. To summarize, this means it would be illegal for us to tell people in Ontario that we can arrange a cash or loan settlement on their policy but it is not illegal for anyone in Ontario to contact us in order to seek our help for contracting into a life settlement.

Insurance Valuation or Insurance Audit?

Life insurance valuations are conducted by actuaries who depending on your need will review a policy to define its actuarial value or Fair Market Value depending on the situation. A Life insurance audit is conducted by an insurance specialist trained in all aspects of life insurance including actuarial sciences, legal, corporate and personal taxation, marketing, reinsurance, financial underwriting... This knowledge allows the insurance specialist to conduct a past/present/futur review and analysis of your policy. The insurance audit include the following elements:

1. Past review of the history of the policy to determine the effectiveness of how the policy was sold and manage.

2. Determination of the current Fair Market Value of the policy using the Replacement Value approach. Click here to understand why determining the replacement value life insurance is the only right approach to determine the Fair Market Value of a policy

3. Determining the future Fair Market Value under different scenarios allowing you to decide whether it would be more advantageous to enter into a life settlement now versus in the future.

4. Click here to understand why you should be careful in using an actuary to get a life insurance audit of your policy.

5. Click here to understand what you should consider before employing an insurance expert in a civil trial against an insurer which could cost you more than $40,000

Use MRFMV to find out the true value of your insurance

This calculator is only to be used with T100, Life-Pay Guaranteed Whole life and Universal Life policies. Term policies have little value unless there is a significant change in insurability with life expectancy less than 5 years. For Whole Life policies participating and Short Pay Guaranteed Whole Life, contact us to get a quote. All values provided are subject to errors and omissions and are only provided for information only in order to assess the need for a full analysis and evaluation/audit.

Instructions: Premiums entered are premiums to age 100.
T100 = T100 premium including any rating as % or rate per 1000 if it was/is a permanent rating
Universal Life Level Cost of insurance = Minimum premium including any rating as % or rate per 1000 if was/it is a permanent rating
Universal Life Yearly Cost of insurance = Level premium to age 100 including any rating as % or rate per 1000 if it was/is a permanent rating
Whole life guaranteed premium to age 100 = premium including any rating as % or rate per 1000 if it was/is a permanent rating

If you you do not know what would be the cost of purchasing new insurance, you can use our preloaded premiums which are based on T100 premiums. Interest rate should be between 2% to 5% and should be based on long term bonds yield. The lower the interest used, the greater the FMV will be.


Universal Life Fraud:
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Order an evaluation
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MR FMV mobile application
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This is how an audit looks like
This is a perfect example of an audit more

Buying Universal Life is a Gamble!
Using a Universal Life is a game of chance more

Everything about orphan policies!
Orphan policies are the way insurance companies increase lapses to cash in on the FMV of life insurance more

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Here is an example of a corporate settlement report more

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  Enter Data Results Items Liquidation Charitable Donation Corporate Settlement ReverseLife Mortgage Selling Third Party
  Choose Choose Choose Choose Choose
Insurance amount Your policy death benefit: $100000 $100000 $100000 $100000 $100000
Cash Surrender Value Your policy cash surrender value: $0 $0 $0 $0 $0
Current Age Your policy cash surrender value: Taxable Taxable Taxable Not Taxable Taxable
Sex Male
Your policy Fair Market Value: $0 $ Connection failed: SQLSTATE[42S02]: Base table or view not found: 1146 Table 'consume1_test.table3' doesn't exist5,000 $5,000 $5,000 $5,000
Smoking Currently No
What you will receive: $0 less taxes Tax receipt of $5,000 Non Taxable Benefit of $5,000 Loan as percentage of $5,000 Lump sum as percentage of $5,000
Original Premium What the insurer will receive: Your FMV of $5,000 $0 $0 $0 $0
Current Premium What your charity will receive: $0 CSV of $0 and death benefit of $100000 $0 $0 $0
Interest Rate What your corporation will receive: $0 $0 CSV of $0 and death benefit of $100000 $0 $0
Click to use preloaded premiums Choose What a third party will receive: $0 $0 $0 Part of death benefit $100000 to pay back loan CSV of $0 and death benefit of $100000
Cash Surrender Value at death Yes
What your benificiary will receive: $0 $0 Death Benefit of $100000 less ACB through CDA Death benefit left of $100000 after loan is paid 0