Blog

Enhance Your Business by Preserving Clients’ Wealth

by | Jan 11, 2017 | Blog | 0 comments

The HNW market is generally risk averse.  This is particularly true as your top clients get older and wealthier.

Defining Characteristics

Consider these characteristics from the 2016 US Trust Insights on Wealth and Worth® survey for the “boomer” and “mature” client segments:

• 74% of Boomers and 75% of Mature clients “say it’s more important to reduce their risk even if it means lower returns”

• Wealth protection is the dominant objective:  Boomers (63%) and Mature (65%)

Protecting Wealth through Portfolio Structure

In constructing your top clients’ investment portfolio, allocations to low risk investments – fixed income, REITs, alternative investments – deliver a counter-balance to anxieties resulting from an unstable and uncertain investing environment.

The Advisor’s Dilemma:  One Wealth Leakage Exchanged for Another

An unfortunate reality is these investments delivering wealth-protecting benefits bring with them a constant wealth-reducing leakage:  increased taxes.  This is the advisor’s dilemma.

Advisor-Applied Variable Universal Life (AAVUL) eliminates the advisor’s dilemma.

Unlike permanent life insurance in which you lose oversight of the client’s wealth, AAVUL puts you in the central role as the builder, manager, and monitor of the policy’s underlying portfolio.

The wealth-preserving investments essential to reducing your clients’ market anxieties are allocated into AAVUL, and the portfolio gains perfect tax efficiency.  This is:  tax-free portfolio income; tax-free growth; tax-free cash access; tax-free death benefit; no alternative minimum tax.

Here’s the key point:  Eliminating taxes, otherwise incurred in a taxable portfolio, increases your clients’ after-tax returns.

Delivering High-Value Services Makes Your Business Stronger

A wealth advisory business that builds itself around satisfying its client’s most pressing needs – risk aversion, wealth protection, and better investment returns – is on the fast-track to accelerated growth.  In one step, AAVUL gives you a straight-line path to meeting your clients’ top needs.  This is the epitome of a high-value service.

Insurance Like It Should Be:  Benefits without Barriers

Advisor-Applied VUL is a vastly different – and more powerful – wealth-planning tool than your past experience may suggest.  You and your clients gain VUL’s high-value benefits but the obstacles that may have prevented you from using it in the past are stripped away.

Insurance Like It Should Be

Benefits, without Barriers

You’re most familiar with retail VUL and its drawbacks:
loads; high costs; complex products; investment limitations; a difficult sales process.

Check out our PPVUL and Registered AAVUL partners’ solutions that keep VUL's benefits while removing the barriers.

Experience Advisor-Applied VUL in Action
Register for an upcoming Webinar to learn
the many uses and benefits that PPVUL and
Registered AAVUL provides
your wealth advisory practice

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