Risk is inherent in all facets of financial wealth. By offering a hedge against the risk of loss, life insurance is risk management—protecting your resources and your legacy.
Protecting Human Capital
Human capital is the value of your expected future earnings, including wages and pension. If human capital is a significant part of your portfolio, then managing your risk is important. Protecting your human capital mitigates your legacy risk and provides the same standard of living you are accustomed to having.
An Asset Class
With its ability to provide significant financial protection with low risk, permanent life insurance is an asset class that helps diversify a well-structured portfolio. As it is guaranteed to pay out at the time of death, this helps create an alternate asset class with a defined outcome.
Life insurance has the dual capability of instantly providing a liquid asset and increasing the legacy you leave. Not only does it provide your family with immediate liquidity to pay taxes and administrative costs, but it can also help minimize or eliminate transfer taxes, such as estate taxes and the generation-skipping transfer tax (GST).*
* Neither Legacy Resources Insurance Services, Inc., nor its agents, provide tax, legal, or accounting advice. Please consult your tax, legal, or accounting professional before making any decisions.