...if there was only one buyer for your house...the person you bought it from 30 years ago. Imagine if you were not permitted to "list" your home on the open market. Do you think you would get a fair price...the fair market value? Or would you have to be satisfied with what the buyer was willing to pay?
As archaic as this may sound, until about five years ago, when it came to liquidating your life insurance policy, the policyholder had few "exit options." The surrender value of the policy was predetermined by the issuing insurance company and had nothing to do with the prevailing market conditions at the time of liquidation.
Thanks to the existence of an enhanced secondary market, the true underlying value of a life insurance policy has been improved to benefit the consumer, making it a more liquid asset. |
Fair Market Value 
