Why do wealthy families buy the most life insurance?
Life insurance has applications beyond just a death benefit. It serves as an additional asset class in a broadly diversified portfolio, potentially reducing volatility and enhancing performance. It can also provide a tax-free source of liquidity to cover the extraordinarily high cost of dignified care for chronic illnesses like Alzheimer’s.
- Life insurance products have changed quite a bit in recent years, are more flexible, can include long-term care benefits and are generally less expensive.
- High income and high net worth families are the biggest buyers of life insurance, but not just for the death benefit. It is an asset that complements stocks, bonds and other portfolio assets because of its unique tax characteristics, low risk and attractive rate of return.
- Estate planning with trusts is incomplete without life insurance to provide the liquidity needed to meet the goals of the trust.
- Other professionals, including many physicians and their advisors, come to us for our expertise as to the proper amount, product, and positioning of insurance in your financial portfolio.
- Because insurance rarely is a primary focus for financial advisors, CPA’s and attorneys, and it is a conflict of interest, they come to us to fill that gap. We work closely with the team to ensure your best interests are served.
Protect Your Loved Ones
Though it can be difficult to talk about, life insurance can reduce the financial strain that your death may have on your dependents. We’ll guide you through finding the right coverage, and create an income replacement strategy should you die too soon.