Clients may have a goal of long-term growth to benefit their families, or the funds may represent important assets for an emergency or other future liquid need. Permanent life insurance can be an attractive alternative to the low-interest bearing account.
It may be possible to use permanent life insurance to “rescue” the stranded money from the low-interest account and provide a valuable solution to meet your clients’ short and long-term needs. The advantages of permanent life insurance include:
There are two main criteria for identifying clients that may be affected by opportunity risk.
Permanent life insurance could leverage dollars held in a low-interest bearing account into a larger, generally income-tax free death benefit.4