Conclusions
Considering life insurance in a context beyond traditional estate tax applications can provide a valuable investment risk-mitigation tool for high-net-worth individuals. Although other investment risk mitigation should not be eschewed in favor of life insurance, life insurance can provide a complementary component of the overall investment philosophy. Incorporating the unique attributes of each individual's investment portfolio, wealth management objectives and tax planning into a comprehensive model evaluating the potential benefits of utilizing life insurance can provide individuals and their advisors with relevant data points to make an informed decision.
Kenneth J. Masters, CLU, ChFC, AEP is director of life insurance design and development at Pinnacle Financial Group, an independent advisory firm based in Southborough, Mass.