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Most people spend more time and are far more invested in purchasing a new car than their life insurance. Once they buy their policy, they sit back and forget about it.  However, like a car, an insurance policy requires ongoing maintenance.

As the stock market’s bull run extends into its seventh year, investment advisors are increasingly looking to hedge funds and other low-correlation alternative asset classes to generate alpha and diversification for their clients. According to data from BarclayHedge, total assets managed by hedge funds increased 46% from 2010 to 2014.

Most advisors are familiar with the benefits of life insurance as a vehicle for transferring wealth, but few realize how attractive it is from an internal rate of return (IRR) perspective. Often advisors’ perceptions of the costs and IRR potential of life insurance are based on outdated information about policy design and performance. That is why we encourage advisors to revisit the potential benefits of life insurance as a tool for high-net-worth clients to not only transfer wealth, but also to build and protect wealth.

Life insurance can be an important piece of a well-crafted wealth transfer strategy for high-net-worth clients. By removing assets from the client’s taxable estate, permanent life insurance can significantly increase the amount of after-tax wealth parents and/or grandparents can pass on to younger generations.

It’s no secret that planning for long-term care (LTC) is an important consideration for Americans as they approach retirement. Almost 70% of people turning age 65 will need some form of LTC at some point in their lives, according to the U.S. Department of Health and Human Services.

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