C3 Financial Partners

“Life Insurance: A Valuable Contingent Asset Class?” | Industry Article Highlights

Fellow Advisors,
“Life Insurance: A Valuable Contingent Asset Class?” is the title of a Trusts & Estates article published this month. The authors, Jay Judas and Michael Fontanini, are two of our colleagues.

Jay is an independent life insurance consultant. We (our clients) have engaged him to provide an independent review/analysis.

Michael is VP, Advanced Sales, and Design with Lion Street, a producer group that C3, as owners, helped co-found over a decade ago.

Our three favorite quotes from the article:

  • “The process of risk-return optimization can be used to create an ‘efficient frontier’ of optimal portfolio allocations that yield the most return for a given level of risk…”
  • “It (life insurance) provides a fixed payment correlated to mortality, not the financial markets, offering a hedge against premature death and volatility in other assets, thus stabilizing the transfer of wealth.”
  • “Because expected risk and return can change over time due to changes in LE (life expectancy), premium requirements, or several other factors, it’s important to periodically review policy performance and update the analysis accordingly.” (Financial strength of the carrier is part of this review.)

We have also highlighted other parts of the article that we hope you find of interest!

Please let us know if you would like to discuss any of the points in the article or have a conversation with the authors.

Thank you for your continued support and collaboration.


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