Life Insurance

Traditional Life Insurance for Estate Planning

The financial landscapes of high-net-worth families often feature intricate asset configurations, including liquid and illiquid assets. Their wealth accumulation and asset transfer strategies are designed for long-term maturation, leaving them susceptible to the whims of market volatility and shifts in financial climates. These factors play significant roles in the dynamics of wealth building and preservation.

In this context, traditional life insurance portfolios can offer compelling Internal Rates of Return (IRRs) and crucial liquidity upon the death of the insured. Constructing a strategic life insurance portfolio can mitigate fluctuations in a family's overall net worth and serve as a critical liquidity safeguard. This is particularly valuable for asset transfer plans that require time to come to fruition, preventing the need for untimely asset liquidations to cover estate tax obligations at an insured's passing

Our clients commonly leverage life insurance to meet various goals, including:

• Generating liquidity precisely when estate taxes are due, thus avoiding the compulsory liquidation of assets.

• Acting as a stability mechanism for other estate planning endeavors that are time-intensive to realize fully.

• Providing funds for specific inheritances to descendants or philanthropic gifts.

• Introducing a guaranteed, fixed-income component to the family's multigenerational investment strategy.