Life insurance is an important part of wealth and succession planning. There has been a massive market for the sale of what is often termed as Universal Life insurance policies – a single premium that guarantees a certain death benefit. These types of insurance deliver a number of important functions within wealth and succession planning, including:-
- Enabling a certain amount of cash to become available on the death of a wealth owner, which can be used for estate tax planning, emergency funding or long term provision for the designated beneficiaries;
- Investment management by securing a defined value on the sum paid by way of premium when the policies eventually pays out the sum insured;
- Tax mitigation through, for example, the absence of inheritance tax or estate duty on the proceeds of insurance.
The interplay between these types of life insurance and alternative wealth and succession planning solutions, such as trusts, is complex but when properly harmonised can create very effective solutions. Capital Solutions can help and guide you through the appropriate planning for complementary use of these wealth and succession planning tools.
We’re unbiased in our solutions as we work with different premier service providers and seek the optimal providers for the best interest of our clients.
We look forward to finding the best solutions for your needs. Please contact us.