1. How the Affluent Create Wealth using 1%
For many people, they see Life Insurance as an Expense. For others, they view it as a piece of their
Financial Portfolio.
For the affluent, they manage their wealth using Life Insurance, and allocate a small percentage (1%
annually) of their wealth into their "Asset Protection Bucket”.
John (56 Non-Smoker) & Mary (54 Non-Smoker)
$1M Investment Portfolio
1% = $10,000
Managing for Liquidity using Survivorship Life Insurance
Cash Value Death Benefit IRR on CV IRR on DB
Year 1 $454 $569,434 -95.45% 5,594.34%
Year 10 $91,386 $592,652 -1.64% 31.18%
Year 20 $283,361 $705,445 3.21% 10.92%
Year 30 $585,305 $922,174 4.02% 6.51%
For Those Affluent Not Concerned about Liquidity using Survivorship Life Insurance
Death Benefit IRR on DB
Year 1 $1,328,613 13,186.13%
Year 10 $1,328,613 45.51%
Year 20 $1,328,613 15.94%
Year 30 $1,328,613 8.43%
Would it affect your lifestyle if you reallocated 1% of your Portfolio on an
annual basis, and created a lasting legacy for your family?