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Case Study 1

Pass the Wealth.

Life insurance strategies deliver some of the best returns in today’s financial market.


The Case
Diversified recently assisted an agent who was working with a high net worth couple in their 50’s who had two key financial objectives: To ensure that their surviving family members were well supported, in a comfortable and strong financial position, upon their deaths. And to minimize the tax liability of the plan.

The Solution
Taking advantage of the 2016 federal tax code that allows an individual to make a gift of up to $5,450,000 without gift taxes, we recommended a single-premium policy with a guaranteed death benefit capable of being distributed to the next one or two surviving generations.

The clients elected to invest $4MM in the plan. The funds where used to purchase two separate $2MM single premium, guaranteed survivorship, life insurance contracts. We assisted the agent in securing the contracts from two different carrier companies to maximize diversification and stability. The final plan delivers a total guaranteed death benefit in excess of $34MM. In addition, there are no taxes due on the benefit regardless of what other estate taxes may be due in the future.

Getting results for your clients
Based on current mortality tables, the internal rate of return on this solution is in the 6% range. And with no tax liability, it is a double winner.

On a risk adjusted basis, life insurance is an incredible tool for passing wealth. How can Diversified help you with your next challenge?