The Appropriate Allocation of Risk Our company has been involved in analyzing and designing life insurance programs for over sixty years. During that time we have seen many changes in policy options, premiums paid and policy guarantees.With our experience and our day to day work in investment analysis we are uniquely positioned to break down policy assumptions and understand their reliability and fit for our client’s purposes.The primary goal of life insurance is to provide a death benefit. Life insurance is a commodity which meets a specific purpose – generally to provide liquidity and tax free cash to solve a problem for a specific period of time. The presence of insurance often time allows other aspects of a business or personal estate to use assets and plan aggressively knowing liquidity will come, reliably from this other source.We have designed insurance programs to work in the following situations:FAMILYEstate creation – to bring additional assets into a family, assuring their financial baseEstate tax payment – transferring cherished assets such as closely held stock, or real estate to the next generation often requires consideration of federal and state estate tax payment due. Life insurance, along with estate gifting and tax minimization efforts can play a key role in making sure your desired legacy is created.BUSINESSBuy/Sell guarantees – partners and shareholders in business together want to know that if a partner passes away, the repurchase of their shares is provided for without undue harm to the business and with a fair payout to beneficiaries. Life insurance reliably makes this happen.Key Person protection – Successful businesses plan for the unexpected. One occurrence is the death of a key executive. In this instance the company may look to protect outstanding lines of credit, lost sales and sales opportunities, the cost of recruiting and replacing the executive and more. The infusion of tax free cash into this unfortunate situation can provide substantial relief to the business at a time of high financial as well as inter personal stress.Executive Benefit Plans – the creation of specialized benefit plans to retain and reward top talent is often used in these times of high competition for gifted executives. Life insurance can play a role in these plans both in providing additional security for the executive’s family and also in accumulating assets for retirement in a tax sheltered manner.CHARITYCharitable intent is often a part of our clients lives. They want to give back as a part of the values they live. Life insurance can play a part in providing an estate legacy in a simple and tax effective manner.