As yields available to conservative investors have continued to fall, some advisors are beginning to look at life insurance as an asset class and not just a risk management product. Take Bill Black, with W.H. Black & Co. in Winter Park, Fla. At 76 years old, one of Black's clients considered transferring $127,590 of cash value to a new policy that provided a $231,830 death benefit. The client initially considered taking the funds and investing them, so Black ran several illustrations that showed the IRR for different life expectancies. “If he lives to age 85, he would have to earn 6.15% annually after taxes on that money to have it grow to an amount equal to the life insurance,” said Black. “But let’s push him out five years beyond life expectancy. He would have to earn 4.06% per year after taxes to have that $127,000 grow to the $231,830 in life insurance.”
A survey of advisors nationwide reveals how the use of ETFs is expanding and what factors are likely to further support this trend.
ThinkAdvisor's TechCenter is an educational resource designed to give you a competitive edge by keeping you abreast of new tech innovations and need-to-know information that can be applied to your business.
Your resource for news, research and analysis to help you deliver more effective outcomes to your clients.
Simplify life for your clients with goals-based planning strategies
What your female clients need to know about long-term care.
How to use digital marketing to increase appointments.
Nov 02, 2017
Join this conversation as a panel of experts provides tips and best practices to optimize your tech resources for business growth.
Oct 25, 2017
Join this complimentary webcast to discover how to leave the impression that employee benefits is stodgy and sluggish in the past.
Sep 28, 2017
Women face unique retirement challenges. We can give you key considerations and strategies to help you optimize your female clients’ Social Security. In this webcast, you’ll...