Variable Universal Life Insurance
Insurance is a risk management tool that has many benefits when structured properly. Developing an insurance portfolio that will protect your clients’ assets, income and provide liquidity is a vital part of the Nordica management process.
Variable Universal Life is a variation of whole life insurance, characterized by considerable flexibility. The product allows a policyowner to determine the amount and frequency of premium payments and to adjust the policy face amount up or down to reflect changes in needs.
A Variable Universal Life policy may help a client accomplish long-term objectives by providing insurance protection and tax advantaged investment opportunities.
Use of Variable Universal Life Insurance for Tax-Advantaged Investing:
Life insurance, when properly structured and used in conjunction with certain trusts, may reduce or exclude estate taxes payable upon the death of a wealthy individual and to ensure that his or her estate has sufficiently liquid assets to pay estate taxes and administration expenses.
Life insurance is an important component of a successful wealth preservation plan. It addresses a number of needs, including accumulating tax deferred income, and creating a source of capital for surviving family members.
Large multinational corporations use life insurance to fund certain liabilities with respect to their “global” executives in a tax-efficient environment. Business continuation, and buy-sell agreements typically are funded with life insurance that provides the necessary cash flow for this transaction.
Prior to a foreign person becoming a tax resident of the United States, life insurance may be used to structure a foreign person’s international wealth. Thus that wealth will not create annual taxable income to him or her and it will not later be subject to the 55% federal estate tax upon his or her death.