Life Insurance

The balance sheets of most high-networth families encompass a set of complex assets with differing levels of liquidity. In addition, most wealth growth and wealth transfer strategies necessitate time for maturity. Thus, market volatility and changing financial circumstances can have a material impact on wealth creation and preservation. Permanate life insurance can produce, tax deferred growth of cash value and deliver instant liquidity to the policy owner at the death of the insured(s). A well-constructed life insurance portfolio can help moderate the volatility of a family's net worth, while providing a significant liquidity hedge for wealth transfer strategies that take time to mature, and help to avert the forced sale of assets that might otherwise be required to fund estate tax liabilities at the death of an insured.

Our clients typically use life insurance to reach one or more of the following goals:

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

 

Michael J. Mullarney, CLU®, ChFC®, CFP®, AEP®

Wealth Management Advisor

 

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