When it comes to comparing the merits of global life insurance with life plans offered in a domestic setting, this same general rule applies. Much of the structure and the type of benefits provided are the same in both situations. At the same time, the differences between the terms and the laws that govern the insurance products can make one policy a better option than the next. Your job as an investor is to determine which provider is offering a plan that most effectively accomplishes the goals you have in mind.

Forms of Global Life Insurance

When it comes to the different kinds of life insurance products that you can purchase in an international setting, it quickly becomes apparent that the choices are very much like your domestic options. There is term life coverage that will provide a specified death benefit if you should pass away before the term of the policy expires. Whole life provides the opportunity to build cash value and also provide a reasonable sum for your beneficiaries when you pass away. Unlike term life, whole life does not expire after a specified term.

A third option includes variable life policies. A variable life product will encompass all the benefits provided by whole life plans, plus a little more. Variable products often allow investors to wrap certain types of assets into the plan. This essentially means you are signing over control of those assets to the insurance provider. The provider manages the assets and uses the proceeds to grow the value of the policy. Along with allowing the opportunity to grow that value continually, this approach is also helpful for asset protection. No matter what happens with the rest of your wealth, those wrapped assets are safe and will keep earning returns.

How Does International Coverage Vary from Domestic Coverage?

All domestic plans are subject to the laws and regulations that apply in your home country. The administration of those plans, the amount of interest that you earn on returns generated by your premiums and even how the funds are disbursed are all subject to the laws of the land. In some cases, those laws are in your favor. Depending on your specific circumstances, some of those laws may not be the best fit for your overall financial goals.

This is where the idea of global life insurance comes into play. The laws and regulations of the country of origin also govern those plans. When those regulations are significantly different from the laws that apply in a domestic setting, there may be the opportunity to receive a greater range of benefits.

For example, a domestic plan may have certain restrictions on how the insurance provider may invest the premiums. By contrast, a life insurance plan based in a different nation may allow for a broader range of investments, both in type and in location. The ability to grow the worth of your variable universal life insurance by investing in global opportunities and not just domestic ones can mean creating more wealth that ultimately goes to the care of your loved ones.

Keep in mind that the fact that a life insurance plan is based offshore does not automatically make it better than a similar domestic plan. As the supreme financial manager for your assets, it is important to compare the terms and conditions that apply to each policy. Consider those terms in light of the laws that govern each of those plans. From there, it will be easier to evaluate each plan in terms of risk level and potential returns.

In connection with requests to Karlsberg International Insurance Company (KIIC) to obtain information on the insurance products and services being offered by KIIC, understand that KIIC Representatives are not tax or legal advisors and do not provide advice with respect to any insurance plan, policy, or trust structure. Consult with your own tax and legal advisors.

Understanding the Nature of an Asset Protection Trust

While there are a number of ways to organize this type of trust, all of them will establish a working agreement between three key parties. The first party is you as the investor who is choosing to assign selected assets to the care of the trust. The trust manager or administrator is the second party in this arrangement, and is the person charged with the responsibility of managing those assets to best effect. To round out the group, you also have the individual that is named as the beneficiary of the trust. This individual is the one who ultimately benefits from the proceeds generated by the trust and will receive those benefits in accordance with the terms and conditions that are determined at the time the trust is established.

The basic function of the trust calls for you to turn over or assign certain assets to the trust itself. With most trust fund structures, you retain ownership of the assets and taxes will still be owed on the returns generated by those assets during the course of the tax year. The administrator will be responsible for managing those assets in accordance with the terms agreed upon when the trust was founded. Typically, the administrator will also take on the task of tracking and reporting income and arranging for the payment of taxes based on those generated returns. In addition, the administrator will also be responsible for disbursing funds from the trust based on the guidelines that were agreed upon when you assigned the assets to the trust.

How Does the Trust Protect the Assigned Assets?

Any assets that you place in the care of the trust are considered dedicated and are generally not subject to being used for any other purpose. In other words, once you set aside those assets in a trust and name a beneficiary, those assets earmarked for the care of the individual you have determined is to receive the full benefit of those assets. No matter what type of financial difficulty you may experience in the future, those assets will not be affected.

For example, you may find yourself embroiled in some type of legal action and named as a defendant in a case. Should the court of jurisdiction find merit in the claims of the plaintiff, there is a good chance that you will be ordered to provide some sort of compensation to that plaintiff, up to and including paying all legal fees and court costs. In order to satisfy that judgement, it may be necessary for a portion of your assets to be seized and liquidated.

Any assets that you have committed to an asset protection trust would not be subject to that court action. Even if all your other assets combined would not be enough to settle the judgement, the assets in the trust would still not be affected. From this perspective, creating the trust serves the same function as any variable life product like variable universal life insurance. The assets remain intact and will continue to benefit the loved ones you have designated as beneficiaries.

While the hope is that you never encounter any type of financial or legal difficulty that leads to the seizure of your assets, it’s good to know that you can protect a portion of your holdings and set them aside for your loved ones. Talk with an expert today about your options for offshore trusts. You may be surprised at how easily you can find the right trust based in the ideal location and move a few assets into the care of a competent administrator.

In connection with requests to Karlsberg International Insurance Company (KIIC) to obtain information on the insurance products and services being offered by KIIC, understand that KIIC Representatives are not tax or legal advisors and do not provide advice with respect to any insurance plan, policy, or trust structure. Consult with your own tax and legal advisors.

The Basics of Trusts

Trusts originally came about as a way to reduce the amount of money that inheritors lost to taxation. Modern trusts operate by giving the legal ownership of assets over to a third party. These trustees are reliable professionals who work with established brokerages or other financial institutions, and they disburse funds or properties to your intended recipient.

By allowing someone else to hold the legal title to your properties and then transfer the assets themselves to the beneficiary who holds the equitable title, trusts make it easier for beneficiaries to inherit money. They also protect assets from beneficiaries who don’t know how to budget. Fortunately, the U.S. has a well-codified legal corpus dealing with these arrangements, so it’s easy to stay on the right side of the tax code.

How Do I Pick a Trust?

Like most asset protection strategies, trusts are generally more effective when they’re employed in conjunction with other asset protection methods. It’s important to research different methods and understand the types of protection they provide. You can learn more about the basics of selecting a method in this article.

Different trusts have different advantages. Some are great at protecting beneficiaries from court-ordered settlements. Others help you and your relatives maintain tax compliance by staggering or limiting disbursement sums. It’s well worth the time it takes to investigate different trust products in advance as certain needs are better served by specific protection strategies.

Where Should I Hold My Assets?

Most investors opt for an offshore asset protection strategy. By diversifying your assets in an offshore financial institution, you may be able to benefit from legally mandated creditor protection and other features. Different countries employ separate laws about how trust funds are protected from seizure, and the quality of financial services available in different jurisdictions varies as well, so make sure to do your research.

In connection with requests to Karlsberg International Insurance Company (KIIC) to obtain information on the insurance products and services being offered by KIIC, understand that KIIC Representatives are not tax or legal advisors and do not provide advice with respect to any insurance plan, policy, or trust structure. Consult with your own tax and legal advisors.

Protecting Your Assets

International laws differ on how invested funds are to be managed and disbursed to beneficiaries. This does not mean that they stand in opposition to U.S. laws. In fact, many international investment laws and tax codes correspond with each other, and it’s perfectly legal to invest overseas in order to mitigate tax obligations or reduce your expenses.

It’s important, however, that you do everything in your power to follow your local laws as well as those of the countries you invest in. In most cases, this is easily accomplished by seeking professional advice prior to actually investing. In addition to ensuring you fulfill your legal obligations, advisers can help you figure out how to structure a stronger portfolio.

Profiting from Foreign Markets

One of consequences of having a well-grown nest egg is that you’ll need to diversify a lot more than you normally would. This means that you have to invest in different kinds of financial products like securities, derivatives and stocks, but it also requires investment in varied markets via foreign exchange currencies or bundled insurance products.

Diversification allows your investments to survive market fluctuations and variations so that you end up with more money in the long run. It’s a critical part of creating an inheritance or strengthening a portfolio. Although your involvement in foreign markets may make your investment strategy a bit more complicated, it’s usually the best way to avoid common pitfalls that reduce profitability, even if you account for brokerage fees.

Employing Different Management Strategies

Of course, your international investments will require new approaches to fund management and a clearer sense of your goals. Because there’s so much variance in financial products and arrangements, you have to learn a lot more about things such as selling strategies, insurance products and other common financial subjects that you already think you understand. It’s best to work with an established international finance manager in order to make sure that your investment methodology is in line with your savings goals.

In connection with requests to Karlsberg International Insurance Company (KIIC) to obtain information on the insurance products and services being offered by KIIC, understand that KIIC Representatives are not tax or legal advisors and do not provide advice with respect to any insurance plan, policy, or trust structure. Consult with your own tax and legal advisors.

How Long Has the Provider Been in Business?

Longevity is always a good measuring stick when it comes to evaluating companies that offer variable life products of different types. The simple fact that the provider has been around for five, ten or twenty years is a strong indication that the company owners and officers are doing something right. Longevity also indicates that those who are leading the company have collected a significant amount of experience and expertise over those years. Assets like those can indicate that your assets will be in very good hands and that they will be managed with care.

Along with the amount of time the company has been in business, it doesn’t hurt to drill a little deeper and get some idea of how long the leading lights in the operation have been on board. A great deal of turnover in upper management can indicate some underlying issues that are not in your best interests. At the same time, if the leadership team is stable and the company is known to value long-term employees, there is a good chance that your investment will be safe.

What Can You Learn About the Provider’s Reputation?

When it comes to business matters, people talk. That is just as true in an offshore environment as in a domestic setting. Before you secure a variable universal life insurance plan with any company, find out what others have to say about the provider. In particular, it helps to know if others perceive the company as operating squarely in compliance with current governmental rules and regulations.

Take the time to find out if the company in question has a history of censures or other types of issues with the government where the provider is based. While there is always the possibility of some small matter arising from time to time, what you want to look for is signs that the provider is the target of ongoing investigations for dealings that may be somewhat questionable. Should you find evidence that points to this type of trend, take that a sign to focus your attention on a different offshore insurance provider.

What you hope to find is a provider who has a positive working relationship with the government where the provider is based. Assuming that you are comfortable with the types of laws and regulations current in force within that nation, there’s an excellent chance that the provider will serve you well over the years. The opportunity for the development of issues that lead to a seizure of the assets you entrust to the provider will be extremely rare, allowing you to enjoy a high level of confidence in your decision to work with that particular insurance company.

Don’t Go It Alone

When it comes to investigating the background and reputation of any potential provider, don’t try to handle the job on your own. Make use of the resources provided by a firm that offers consulting and support with offshore financial activities of all types. Together it will be much easier to locate the information you have in mind, verify the accuracy of that data and then use the information to make an informed choice.

In connection with requests to Karlsberg International Insurance Company (KIIC) to obtain information on the insurance products and services being offered by KIIC, understand that KIIC Representatives are not tax or legal advisors and do not provide advice with respect to any insurance plan, policy, or trust structure. Consult with your own tax and legal advisors.

Types of Offshore Life Insurance to Consider

Before you can make any decisions about what international life insurance can and can’t do for you, it helps to define what you want to accomplish with the asset. If your primary goal is to wrap your assets and protect them from situations such as lawsuits, then you would want some sort of variable universal life insurance plan that would allow you to include holdings like real estate, stocks and other investments in an asset protection scheme. This approach can also help make sure that your beneficiaries receive the benefits of those holdings without having to pay much in the way of inheritance or death taxes.

Perhaps your main concern is to provide immediate cash for loved ones in the event of your untimely demise. Some type of offshore term plan would be a good fit for this. While plans of this type do not accrue any kind of cash value that you can use as collateral, they do tend to pay out quickly once the death claim is filed. This means your spouse, partner or children will have cash on hand while your estate is being settled.

You may want to go with some sort of offshore life insurance plan like whole life. This type of plan locks in a specific cash value that can be borrowed against when and as needed. With offshore plans, you are likely to find the interest rate attached to the loan is extremely competitive with the loans offered through domestic life insurance agencies. As you repay the loan, the cash value of the policy will slowly return to normal. In the event that you should pass away while still repaying the loan, the outstanding balance is deducted from the face value and the remainder allocated to your designated beneficiaries.

Why Offshore Rather than Domestic?

The underlying reason to consider offshore life insurance as opposed to domestic life plans is similar to the rationale behind making any offshore investments. The potential returns are often greater even as the cost is somewhat lower in comparison with what you can secure at home. This is often because of the differences in governmental regulations that apply to the plans.

With an offshore insurance policy, there is a good chance that the arrangement will be free of some of the regulatory measures that are common to a domestic market. What this means for you is that the cost of providing the coverage is lower for the offshore companies. Part of the savings is passed on to you in the form of lower premiums. This allows you to purchase more coverage without having to spend any additional funds.

Where to Buy My Offshore Life Insurance?

Just as you diligently investigate the laws and regulations that apply to international investments, you want to do the same thing with life insurance. Find out where a particular provider is based and delve into all the regulations and laws that the provider must follow in order to do business. If you feel those regulatory measures provide you with adequate protections in return for the coverage secured under the plan, then it is worth your time to look more closely at the particulars of the policy. As long as it provides benefits that accomplish what you have in mind, purchasing the plan is a very smart move.

In connection with requests to Karlsberg International Insurance Company (KIIC) to obtain information on the insurance products and services being offered by KIIC, understand that KIIC Representatives are not tax or legal advisors and do not provide advice with respect to any insurance plan, policy, or trust structure. Consult with your own tax and legal advisors.

As its name suggests, a private placement offshore variable universal life insurance product is not generally made available to the public by means of a prospectus or a fact sheet. The basis for keeping these financial instruments private is that they are only made available to qualified individuals whose net worth and investment acumen merits a private offering.

Basics of an Offshore Insurance Policy

In the United States, the business of providing life insurance policies is regulated by various entities, including the Securities and Exchange Commission (SEC), the Internal Revenue Service (IRS) and a state insurance commission. Insurers based in the U.S. are subject to licensing and extensive oversight by the regulatory entities. As financial instruments, however, insurance policies enjoy certain tax advantages that make them more attractive than investment products.

An offshore life insurance variable life product can be used as a simplified and efficient method of wealth management and asset protection. Offshore insurers are not subject to U.S. regulations; this gives them greater flexibility in terms of managing the assets of the policy holder.

The variable aspect of an offshore life insurance policy means that various investment managers are able to handle the assets within. The asset managers are appointed by the insurance company and, in some cases, are selected by the policy holder. The universal aspect refers to a single deposit requirement, which can be negotiated and paid over a certain period.

Offshore Insurance Benefits

The investment industry in the U.S. is subject to a strict regulatory environment that gives limited flexibility to asset managers. Fund managers in the U.S. who manage insurance company portfolios face liquidity and due diligence restrictions that prevent individual investors from making their own decisions. This is not the case with offshore insurers.

With an offshore private placement life insurance policy, wealthy individuals who are also sophisticated investors can direct their asset managers to make certain investments on their behalf. The profits realized are deposited into the policy to maximize its value, and the accumulated funds are not generally subject to taxation.

The insurance industry in the U.S. is subject to high operating costs that are often passed on to policy holders in the form of fees. Since offshore insurers are usually based in international jurisdictions where companies enjoy certain corporate tax advantages, their cost of doing business is lower and not typically passed on to policy holders.

The flexibility afforded by offshore life insurance policies extends to account access in the form of requests to surrender funds, loans against the policy value and transfers from one asset manager to another. These are flexible, tax-free transactions that offshore insurers stipulate in their private offerings and policy contracts.

In the end, offshore life insurance policies combine the elements of offshore wealth management with tax advantages and the peace of mind that high net worth individuals seek for their loved ones.

In connection with requests to Karlsberg International Insurance Company (KIIC) to obtain information on the insurance products and services being offered by KIIC, understand that KIIC Representatives are not tax or legal advisors and do not provide advice with respect to any insurance plan, policy, or trust structure. Consult with your own tax and legal advisors.

Essentially, a wrapper involves securing some type of variable life product that provides the ability to turn over management of certain assets to the insurance provider. Those assets are what provides the worth of the policy and makes it possible for the value to grow over time. Once the plan matures, you have the option of moving the assets out of the plan or leaving them in place and allowing the proceeds from those assets to be distributed to your beneficiaries in the form of death benefits. With either approach, it pays to select the assets for inclusion in the wrapper with care.

Stock Options

One of the most common assets included in an insurance wrapper is shares of stock. Focus your attention on stock options that have a solid history of stability and steady growth. Since the idea is to take advantage of the benefits offered by a variable universal life insurance policy and build up as much value as possible, you want stocks that are capable of performing well in just about any type of economic climate. Many offshore investors will use specific stock options as a way of creating a solid foundation for growth over the years, leaving their beneficiaries with a reliable source of wealth when that value is distributed.

Real Estate

You may also find that including real estate among the assets held within the wrap is a good idea. While any type of asset may experience some amount of depreciation from time to time, residential and commercial real estate will generally fare better than other assets during a severe economic crunch. Even if the assets do experience some devaluation for a period of time, they are very likely to bounce back and be stronger than ever.

As you consider different properties for inclusion in the wrapper, try to focus on land that is likely to remain in demand for the long term. This will ensure that earnings from the properties will greatly enhance the value of the insurance plan and provide even more financial security for your beneficiaries.

Alternative Investments

You can also include so-called alternative investments in an insurance wrapper. Assets of this type tend to appreciate in value over the years and tend to be somewhat immune to the type of issues that can create problems for stock options and even for real estate holdings. By including some of these assets in the wrapper, you help to diversify the holdings and increase the ability to continue increasing the value of the life insurance no matter what is happening with the economy.

A good example of an alternative investment is precious jewels. This can include the stones themselves or have to do with finished pieces that are considered highly desirable in the marketplace. High quality jewelry can easily double or triple in value over the life of the policy, making it worthy of consideration.

The Importance of Diversifying the Assets in a Wrapper

Just as you learned long ago with your investment portfolio, diversification provides a number of benefits. When one type of asset is experiencing a temporary downturn in value, other assets are likely to be increasing substantially. Assuming you have chosen to diversify the assets held in the wrapper, it is much easier to experience some amount of growth each year, even when the economy is going through a recession or depression. Consider the inclusion of multiple types of assets as one more way of protecting the interests of you and those you love, and ensuring that ultimately you do achieve the goal set for the wrapper and the variable life product.

In connection with requests to Karlsberg International Insurance Company (KIIC) to obtain information on the insurance products and services being offered by KIIC, understand that KIIC Representatives are not tax or legal advisors and do not provide advice with respect to any insurance plan, policy, or trust structure. Consult with your own tax and legal advisors.

1. Planning Starts Now Not Later

It is true that some investors treat the idea of protecting assets a bit like getting a flu shot. Rather than getting the shot before the flu season gets underway, they wait until they notice everyone around them is sniffling. At that point, it may be too late.

Asset protection is not something you want to put off until it’s too late. Should you find yourself facing a lawsuit, attempting to wrap assets in some sort of protection plan could cause more problems than the effort is worth. On the other hand, if your protection strategies are implemented now, no one can question your motives when legal issues arise at a later date.

2. Do Your Homework with Every Asset Protection Strategy

When you consider the purchase of an offshore investment, chances are that you spend time researching the background of the underlying asset, evaluate its past performance and project how it will do in the future. This same general process must be applied to any protection method that you are considering. Don’t make assumptions based on what you hear. Get the details for yourself and make an informed decision. After all, it’s your hard-earned money that is at stake.

3. One Protection Method is Not Enough

You may be tempted to purchase a variable universal life insurance plan and bundle a few of your assets into the plan for safekeeping. While this approach is certainly a worthy element of any protection strategy, don’t let that policy be the only thing you put in place.

Consider purchasing personal liability insurance that can protect you in the event of a lawsuit. If you are the owner of a corporation, business liability insurance is also extremely important. Coverage of this type can go a long way in providing funds for settling judgements and keep your personal assets safe.

Don’t overlook the potential of trusts and similar arrangements. Depending on the laws that prevail in the countries where these funds are based, the range of protection can be significant.

4. Balance the Control

With different asset protection strategies, try to find that sweet spot in which you retain some control but also provide plenty of authority to a plan administrator. This is important for a couple of reasons. You won’t have to spend a lot of time managing the fund or plan, allowing more time to focus on new investment opportunities. In addition, too much control on your part could prompt questions regarding whether you and the plan administrator are one in the same. That is not a perception that is particularly helpful when you are facing some sort of legal action.

5. Never Consider Protection Complete or Done

As an investor, you don’t purchase a few assets and then sit on them for the rest of your life. You hold the assets for a period of time and eventually replace them with other opportunities. The same approach should be applied to your asset protection efforts.

As your wealth expands, the range of protection strategies that you employ must also evolve. Take the time every year or so to take a long look at your financial situation. Do those protection efforts still speak to your needs adequately or is it time to make some changes? If you find that something needs to be augmented or changed, don’t hesitate to do so as quickly as possible.

In connection with requests to Karlsberg International Insurance Company (KIIC) to obtain information on the insurance products and services being offered by KIIC, understand that KIIC Representatives are not tax or legal advisors and do not provide advice with respect to any insurance plan, policy, or trust structure. Consult with your own tax and legal advisors.