International Wealth Mentality Month

Life Insurance as an Asset Class

January is International Wealth Mentality Month.  This month serves as a reminder to grow wealth by adding new and alternative assets to a financial portfolio.  Wealthy families often include life insurance as an asset class in their portfolio.  Life insurance death benefits can provide a reliable component of a fixed asset class.  Death benefits are generally an uncorrelated asset class and all but assured except for the timing of receipt, as long as premiums are paid in full and on time.  The focus is usually on the “Premium to Death Benefit” ratio and the Internal Rate of Return (IRR) in selecting this portfolio alternative asset.  Alternatively, the cash value from the life insurance policy can be used as an alternative income source.  Click here to read more about using Life Insurance for Ultra High Net Worth clients. 

Contact us with any questions or opportunities to help your clients achieve their goals.  This is what we enjoy doing for only a select number of families, businesses, and charitable institutions each year, and we look forward to hearing from you.