The book valuation can vary dramatically based on the composition of clients by age. Younger policyholders and older policyholders typically have different mindsets, objectives, and strategies for the utilization of their assets.
Older policyholders may be looking to withdraw equity from their insurance assets as they reach retirement. Another reality is that segregated fund business may be down the road. On the other hand, younger policyholders may have more aggresive insurance or investment strategies.
These factors must be accounted for in the valuation to understand the impact a client's age has on the true value of the book.