Understanding Life Insurance as an Asset Class

Did you know that allocating a portion of your portfolio to purchase a life insurance death benefit can help offset market losses? That’s because life insurance complements other asset classes, such as stocks and bonds, helping to manage overall portfolio risk. The death benefit risk is:

• Uncorrelated with other sectors of the investment marketplace, such as equities or bonds
• Borne by the life insurance carrier, which will pay the death benefit in full at the event of death
• Based solely on a death event, not a market event that can cause a downturn in value

If you have questions about the role of life insurance in a comprehensive and diversified wealth management strategy, reach out today to schedule a meeting.

^{A diversified portfolio does not assure a profit or project against loss in a declining market.}

^{This communication is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.}

^{The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable by having the policy approved. As with most financial decisions, there are expenses associated with the purchase of life insurance.  Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications. The guarantees provided by the insurance company are contingent on the claims-paying ability of the issuing company.}