Insurance Solutions  / / / / /

High Net Worth Life Insurance

Our knowledge and experience is focused in several areas:

  • We utilize insurance product offerings from over 50 highly-rated insurers.
  • We analyze the cost structure of insurance policy designs, look closely at insurer financial strength, focus on the internal rate of return, or IRR, and look at both guaranteed and current cost assumption approaches.
  • We focus on various insurance options based on risk tolerance, time horizon and ever-changing goals.
  • We follow UPIA (Uniform Prudent Investor Act) guidelines of annual and thorough policy reviews that trustees must follow in their role of fiduciary.

Life insurance is protection against financial loss that would result from the death of an insured.

It is an essential part of a financial plan to help protect loved ones financially with a death benefit.
The goal is to provide a measure of financial security for your families and businesses.

  • Life insurance provides an infusion of cash for dealing with the adverse financial consequences of the insured’s death.
  • Cash values grow tax-deferred during the insured’s lifetime.
  • Death benefits are generally income-tax-free to the beneficiary.
  • Cash value withdrawals are treated on a first-in-first-out (FIFO) basis; therefore cash value withdrawals up to the total premiums paid are generally income-tax free.
  • Policy loans are income tax-free.
  • Death benefits may be estate-tax free if the policy is owned properly.
  • A life insurance policy may be exchanged for another life insurance policy (or for an annuity) without incurring current taxation.
  • A cash value life insurance policy may be thought of as a tax-favored repository of easily accessible funds if the need arises; yet, the assets backing these funds are generally held in longer-term investments, thereby earning a higher return.
  • Life insurance policies have exclusions, limitations and terms for keeping them in force. Contact an insurance professional for costs and complete details.

So whether you own or are considering life, disability or long term care insurance on a corporate or individual basis, allow us to apply our almost

40 years of industry experience.

Life Insurance Policy Review

Advanced Life Insurance Portfolio Review for Professional 
Advisors/Trustees/Paradigm Gilbert Insurance Clients

A recent study in the Journal of Financial Service Professionals indicates that anywhere from 70 to 95 percent of Trust Owned Life Insurance (TOLI) had no servicing agent ¹.

A survey in Trusts and Estates found that 83.5 percent of professional trustees had no guidelines or procedures for handling TOLI, and 95.3 percent had no investment policy statement covering TOLI. Additionally, only 28.8 percent of nonprofessional trustees had reviewed TOLI within the last five years ².

Thus, the problem is that the trustees have neither the life insurance skills to manage TOLI nor the procedures in place to do so. And 71 percent of nonprofessional trustees have not reviewed their policies within the last five years. Almost all of this insurance can and should be restructured and improved ³.

After four decades of working with high net worth individuals, families and business owners, we have artfully honed the portfolio review process and provide detailed analytics for professional advisors, trustees and clients following the Uniform Prudent Investors Act (UPIA) guidelines of annual and thorough policy reviews that trustees must follow in their role of fiduciary. The end result is clear, objective understanding of the life insurance portfolio reviewed. Click here for an outline of Trust Owned Life Insurance (TOLI) services.


1 “Trust-Owned Life Insurance: Issues Trustees Face; Decisions Trustees Need to Make,” July 2005, page 39

2, 3 “The Problem With Trusts Owning Life Insurance,” May 2003, page 62

Optional Riders

Optional provisions and riders are attached to a policy help protect policyholders and add benefits to cover their unique needs.

Optional Riders
Waiver of Premium
Will waive the insured’s premium if the insured becomes disabled.
Disability Income
The insured becomes totally disabled, as defined in the rider, the insured will begin to receive monthly disability income benefits after the elimination period.
Accidental Death/Double Indemnity
The insured dies as a result of an accident within  a specified period of time after the accident (usually 90 days), the policy will pay double the face amount to the beneficiary.
Cost of Living
To protect beneficiaries from the effects of inflation over a period of time.
Accelerated Death Benefit
Provide financial assistance in the event that you become diagnosed with a terminal illness.
Guaranteed Insurability
Also called a GI rider, a life insurance rider that allows the owner of a life insurance policy to buy additional life insurance with no underwriting. A rider is an additional benefit to a life insurance policy beyond the death benefit.
Long Term Care Rider
Provides an acceleration of the death benefit to help pay for costs involved with long-term care.
Return of Premium Rider
A policy add-on that returns premium paid if the insured outlives the term of the policy.

Underwriting Advocacy

Intelligent and aggressive underwriting is the single most important factor in dictating the cost of insurance. We specialize in truly understanding the intricacies of the underwriting process. We leverage our high volume, personal relationships with senior underwriters and independence to obtain “exceptions” from the insurers, resulting in the most competitive offers for our clients with respect to pricing, coverage and health ratings.

Our success in underwriting is rooted in our long history and full comprehension of retention limits, the reinsurance process and the idiosyncrasies of the individual insurers. This high level of experience, combined with years of building and maintaining unparalleled relationships with the most senior underwriters, makes us a valuable partner in servicing the most discriminate clients.

higginbotham financial is always promoting the insured’s best interest.

Life insurance policies have exclusions, limitations and terms for keeping them in force.

Contact an insurance professional for costs and complete details.