Traditional Life Insurance

The balance sheets of most ultra-affluent families are comprised of complex assets with varying levels of liquidity. Additionally, most wealth accumulation and asset transfer strategies require time to mature. As a result, market volatility and changing financial circumstances can have a material impact on wealth creation and preservation.


Traditional life insurance product portfolios can produce attractive IRRs and provide immediate liquidity to the policyowner at the death of the insured(s). A well-constructed life insurance portfolio can help reduce the volatility of a family's net worth, while providing an important liquidity hedge for asset transfer strategies that take time to mature, and help to prevent the forced sale of assets that might otherwise be required to fund estate tax liabilities at the death of an insured.

Our clients generally use life insurance to achieve one or more of the following objectives:

Create liquidity at the time estate taxes are due to avoid the forced sale of assets
Hedge other estate planning strategies that require time to be fully realized
Fund specific inheritances to heirs or charitable bequests
Establish a guaranteed, fixed-income investment within a family's intergenerational asset allocation
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