The Benefits And Advantages Of Life Insurance Solutions

Life insurance has become virtually ubiquitous in wealth planning. It is flexible, can be adapted to a wide range of purposes, enjoys very favourable tax treatment in most if not all jurisdictions and is virtually universally recognised. Life insurance can be used to preserve and increase wealth as well as pass it on to the next generation in a very tax-efficient manner. The main benefits are taken in turn.

5.1. Inheritance and succession planning

Life insurance can enable the tax-efficient transfer of wealth from the older generation to the younger without the need for estate executors. It can under certain circumstances bypass forced heirship laws by removing the assets from the policyholders estate (the assets become the property of the insurer), though this depends on jurisdiction. Furthermore, legal disputes are rarer, it is exceedingly difficult to attack a life insurance policy, particularly a Swiss policy. Done properly it can be very cost-efficient.