Family Security:   A large cash lump sum payment would be made by the life insurance policy in the event of the life insured’s death. This cash could be used to protect a family’s lifestyle if the insured life was the main income earner. An insurance policy would typically be held in Trust and in an offshore company. The cash pay out can be used by the Trustees to replace the family’s lost future income. Estate Tax Settlement: Insurance can be used by the Trustees owning the policy to pay inheritance or worldwide wealth taxes that become due upon the death of the life insured. The insured could have a range of worldwide assets that attract estate tax depending upon how the asset is held and jurisdiction in which it is based. Insurance can be used to pay these taxes when the asset is exposed to tax. Life insurance is a noncontentious solution and seeks to pay taxes due rather than seeking to avoid payment of the tax through careful and elaborate structuring. Debt / Credit Protection: Credit and loan facilities may be recalled by banks or other parties upon the death of the insured life meaning the family could have to find significant cash quickly to pay off the debts. A quick and timely pay out from a life insurance policy can prevent a fire sale of assets being made to repay debt secured against them, thereby leaving the assets intact to be enjoyed by the family. Business Continuity / Key Man Protection: A life insurance pay out can provide the often significant cash needed to safeguard a business if the founder or a key individual employee passes away until a suitable replacement is found. The payout may be used to secure the services of a suitably qualified individual through a ‘golden handshake’ arrangement. It can also be used to provide the business with a pool of liquidity to continue trading and potentially pay off debts. Partnership Agreements: The cash from an insurance policy can be used to provide the funding needed to purchase a deceased’s partners shares in a business. The deceased partner’s shares are transferred to the remaining business partners whilst providing immediate funds to the deceased’s family, or beneficiaries, for the value of the shares that the partner held in the company. This not only provides protection for the family but also safeguards the business partnership from the burden of having to find significant funds to buy the deceased shares from the family, thereby allowing it to continue. Beneficiary Equalisation: A transfer of assets like a home or even a business to an individual beneficiary may not create a fair or equitable solution for all the beneficiaries. An insurance policy can provide the cash liquidity required to allow a more flexible division of assets thereby allowing all beneficiaries to inherit equally. Asset and Currency Diversification: A high value life insurance policy can provide a Trustee with not just the life cover they require but also crucial diversification into a different asset class. Insurance policies are backed by very high quality, financially strong companies and policies are, almost without exception, priced in US dollars meaning trustees have a hard currency asset as part of their Trust portfolio. An insurance policy could also protect against economic volatility of the life insured’s country of residence, as well as loss of value in the currency of a resident’s country and even high and economically damaging inflation on the clients asset base. Sovereign and Political Risk: Planning A policy held offshore can help protect an individuals assets from government confiscation and provide them with access to a separate asset pool if they need it during times of political uncertainty. Philanthropy: Meeting a clients charitable giving goals can be achieved with the death benefit from an insurance policy. Trustees could apportion all, or some, of the cash paid out to the Trusts named philanthropic causes. Using an insurance policy to meet this need could also mean the remaining beneficiaries can inherit or benefit from the remainder of the Trusts’s assets with little or no impact on their requirements.