Meet
Helena
.
Helena was 55 years old and living a comfortable life in Switzerland, working as a successful financier. However, despite her high net worth, she was worried about having enough income to maintain her lifestyle when she planned to retire in 10 years.
Introduction
Helena, a successful Swiss financier in her mid-50s, had worked hard to build a comfortable life. With a substantial net worth and a well-established career, she looked forward to retirement. However, a looming concern for her was ensuring a consistent and sufficient income to maintain her desired lifestyle. While her investment portfolio was impressive, it leaned heavily on low-yield assets, creating a potential income gap in her retirement. Helena sought the guidance of an independent financial advisor, hoping to find a solution that would bridge this gap and secure her financial future.
The Solution: Protected Income for Life
Helena's financial advisor, after carefully assessing her situation and goals, recommended Capital for Life's innovative Protected Income for Life solution. This strategy, tailored to high-net-worth individuals like Helena, involved leveraging her existing assets to create a guaranteed stream of retirement income.
At the heart of this strategy was a cash value life insurance policy, funded through a Lombard loan. This loan, secured against Helena's existing investments, offered favourable interest rates and flexible repayment terms. The loan proceeds were used to purchase the life insurance policy, which would, in turn, provide a steady income stream throughout her retirement.
Implementing the Strategy: A Lombard Loan and Cash Value Life Insurance
To fund the Protected Income for Life solution, Capital for Life facilitated a US$1 million Lombard loan from a Swiss private bank. The loan was structured to be drawn down in US$200,000 increments over five years. Each instalment was used to purchase a portion of the cash value life insurance policy, locking in Helena's future income payments.
Thanks to her high salary and substantial bonuses, Helena could comfortably cover the interest payments on the Lombard loan while also gradually repaying the principal over time. This phased approach provided flexibility and ensured that the financial burden remained manageable.
"With Capital for Life's expertise, I secured my retirement income and ensured a tax-efficient legacy for my beneficiaries. Their innovative approach perfectly complemented the rest of my riskier portfolio."
Helena
Financier
The Results: Financial Security and a Tax-Efficient Legacy
Helena was delighted with the outcome of the Protected Income for Life strategy. Not only did she secure an additional US$50,000 per year in guaranteed retirement income, but she also achieved several other benefits:
Ready to Plan Your Retirement?
Are you a high-net-worth individual seeking a reliable and secure retirement income? Explore the possibilities of personalised life insurance strategies with Capital for Life. Schedule a free consultation today to discover how we can help you protect and provide for your future.
