A Fund for Others

Why life insurance for wealth transfer should be allocated and adjusted like any other long-term holding, and how that compares with the way it is sold today.

Life insurance answers two different questions. The first is protection: if I die tomorrow, will my family be all right? The second is wealth transfer: how much of what I will have do I want to go to other people as cash, and how do I keep that right as my life changes? The way life insurance is sold today was built for the first question. It is now used for both. For the second question, I think there is a simpler and more logical way to do it, and it borrows the logic investment advisors already use for portfolios.