Life Insurance as an Asset Class
Are your clients interested in boosting their retirement savings, intrigued by investing, but fearful of the market’s volatility? The 2008 crash has many still struggling to recover from financial losses. Some found luck in the stock market and fortune in real estate. But nowadays clients are looking for new ways to grow their retirement stash, increase their wealth, and efficiently pass it on to future generations with little to no loss. Most plans come with downfalls.

Pensions and 401(k)s are provided less often. Social Security is running out. Real estate and the stock market come with tons of risk. Fluctuation of activity makes it difficult to know exactly what the client owns at any given time. Transferring wealth is typically an action that is taxed quite a bit. No one wants a lifetime of hard work and cash accumulation to take a hit as it passes down a generation. Clients want the exact amount they’ve earned to be passed to their children.

Permanent life insurance can do just that.

Permanent life insurance is an asset that can transfer wealth between generations of a family without an unknown flux. It provides the closest certainty of value of any asset class.

What is an Asset Class?

Asset classes come with different risks and returns and perform differently based on their given market. The most common asset classes are stocks, bonds, and cash equivalents (money-market instruments like Treasury bills or bank CDs).

These assets can be used in the future for the policyholder while s/he lives or can be transferred to their family upon death.

Permanent Life Insurance as an Asset Class

Other assets come with risk and can rise or fall depending on volatility. Typically each asset affects each other as well if you own more than one simultaneously.

Life insurance grows at a guaranteed rate.

Regardless of how the market behaves, life insurance guarantees a defined amount that will not lessen. The final figure will be paid out no matter what, so there’s no guesswork on how much is delivered to your client’s children. There are no penalties, no reductions, and it’s simple to transition from the policyholder to the beneficiaries. And it’s all guaranteed.

Permanent life insurance can be used now as a source of income or later as a lasting family legacy for a future generation.

Beyond the tax-free payments, predictable value and predictable growth, life insurance creates liquidity, avoids probate and is easily divisible. No longer “just another product,” life insurance has been elevated to the status of smart investment.

For help talking to your clients about permanent life insurance as a potential investment strategy, give us a call at 1-800-823-4852 or click here to email our Brokerage Sales Support team.