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The Three Silos of Life Insurance

As time passes, circumstances change. To help clarify the types of insurance most impactful to an individual or business, we categorized life insurance into three silos:

  • Life Insurance 101 employs a needs approach, addressing income replacement, estate planning, and philanthropic desires for individuals, and succession, key person, or executive benefits for businesses.
  • Life Insurance 201 focuses on diversification. We recognize that an insurance death benefit represents an internal rate of return when measured against premiums paid. There is no correlation to the stock market and insurance becomes a tool to diversify one’s portfolio of assets.
  • Life Insurance 301 speaks to Private Placement Life Insurance, an income tax efficient structure to hold tax–inefficient investments. Used for wealth creation and preservation and multi-generational transfers, there are no K–1s, no surrender charges and complete transparency.

At GFG, we educate clients with personal or business interests in any of the Three Silos. Following thorough review, we implement the desired solutions and monitor ongoing policy performance through our Stewardship program.

Private Placement Life Insurance and Private Placement Annuities are unregistered securities products and are not subject to the same regulatory requirements as registered securities products. As such, Private Placement products should only be presented to accredited investors or qualified purchasers as described by the Securities Act of 1933. The information presented here is not an offer to purchase or the solicitation of an offer to purchase an investment product and under no circumstances should be construed as a prospectus or advertisement.

Variable life insurance and variable annuity products are long-term investments and may not be suitable for all investors. Investments in variable products are subject to fluctuating values of the underlying investment options and entail risk, including the possible loss of principal. Product guarantees, including the death benefit, are subject to the claims-paying ability of the issuing insurance company.

Investors should consider the investment objectives, contract features, risks, charges and expenses of the products carefully before investing. No offer or solicitation of an offer to purchase the variable annuity or variable life insurance product can be made except pursuant to the private placement memorandum, prepared specifically for that purpose.

Pursuant to IRS Circular 230, we notify you as follows: The information contained in this document is not intended to and cannot be used by anyone to avoid IRS penalties. This material is intended for informational purposes only and should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney, tax advisor or plan provider.

Securities and Investment Advisory Services Offered through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Goldstein Financial Group, LLC and The Insurance Design Center, LLC are independently owned and operated.