Insurance Products

Life Insurance, Variable Universal Life (VUL), Deferred Variable Annuities (DVA), Fixed Annuities (Swiss Annuities) and others are integral to Wealth Management for a number of reasons, including;

  • Tax efficiency in investments
  • Tax optimisation
  • Asset protection
  • Confidentiality
  • Security
  • Estate planning

Insurance products can be extraordinarily efficient, effective tax optimisation and succession planning strategies. Done improperly or carelessly, they can also be extraordinarily destructive of wealth - see article on home page: "True Cost of Life Insurance".

Envisage will set up whatever life insurance, annuity, or other structure desired and appropriate. Many products are well defined and easy to set up. A big challenge in a fast changing environment has been in getting good advice. Unlike other more traditional areas of wealth management, Asset Management, Tax, Financial Planning, Insurance is not as well understood. A reflection on both the industry itself and the rapid changes in the product and regulatory environment over the last 10 years. The laws governing insurance have been changing rapidly over the last 10 years and the ramifications are not yet widely understood. Much is new and has not worked its way down to practitioners.

Insurance products for wealth planning are split into the following areas; 

  • Life Insurance (whole, term, investment account linked…)
  • Deferred Variable Annuities (DVA)
  • Fixed Annuities
  • Equity Indexed Annuities
  • Private Placement Life Insurance (PPLI)
  • Private Placement Variable Universal Life Insurance (PPVULI)

Each product has its pros and cons and the appropriate product for a particular client is arrived at in personal discussion considering the various factors involved. For complex needs, we work with subject matter experts in each sector of the industry. Insurance is a highly complex area, no one can be a master of all aspects and products.

Given the eagerness of the various providers to sell their products, our value add may lie simply in providing a sanity check, "does this make sense for you?" or "which solution makes the most sense?".

Offshore Life Insurance Products 

A transfer in trust of liquid assets, which are then used to buy an offshore issued life insurance policy, can be a useful option for minimising or eliminating US and other countries income and estate tax while preserving inter-generational wealth. There are two significant advantages to this structure: 

1. Tax minimisation / after tax income maximisation
2. Asset protection (the structure is protected from future creditors) 

Life insurance is an extraordinarily flexible financial planning tool and finds applications in an extraordinary number of circumstances. For many people, a life insurance policy with assets placed in a separately managed account (Investment account linked life insurance or portfolio bond) is a good solution for a number of issues.