Life Insurance

Many high net worth families and individuals fail to utilize life insurance because they believe they do not need it. This is true since they generally have sufficient assets to pay taxes and to leave a portion of their estate to their children and grandchildren. However, life insurance is not about need, but about risk mitigation and wealth preservation. Often the high cost of estate taxes, administrative costs, and claims against an estate greatly diminish an estate's value when a family is forced to sell assets in a down market due to insufficient liquidity. The death benefit of life insurance provides an immediate source of liquidity to pay taxes and other expenses, thus avoiding the forced sale of assets.


Life insurance also has the added benefit of offering estate equalization. The legacy of many affluent families and individuals contains significant non-monetary assets, such as business, art collections, or real estate. When passing specific assets to certain individuals, life insurance can solve the challenges of equitably dividing an estate by providing a comparable inheritance for other heirs.

Advanced funding and gifting strategies reduce the burden of premiums for larger policies, allowing the true cost to be leveraged.