How much does a multi-million dollar life insurance policy cost?
Life insurance is often viewed as a tool for providing financial security to loved ones. However, for individuals with substantial assets, it can also be an effective means of preserving wealth.
To have a policy that achieves both protection and significant growth becomes a “must have.”
As global markets fluctuate while taxes on estates and consequential inheritances become more complex, having a robust financial strategy is critical. Life insurance can play a key role in that strategy, ensuring that your legacy is protected.
But what does this kind of policy really cost? The answer goes beyond premiums—it’s also about the financial benefits you can gain over time.
The power of combining protection and growth
Modern life insurance plans go beyond the traditional purpose of financial protection. By linking the policy to market indices, such as the S&P 500, these plans provide a way to capitalise on market growth while safeguarding against downturns.
Over the past 50 years, the S&P 500 has averaged annual returns of over 10%, offering a significant growth opportunity for long-term investors. What’s unique about these insurance plans is their ability to shelter your capital with a 0% floor, meaning that even during negative market years, your investment remains untouched by losses.
This combination of protection and growth makes life insurance the answer for individuals looking to preserve and increase their wealth.
What you pay and what you earn
Let’s break this down with a simple example.
Imagine you’re a 45-year-old non-smoker, paying $50,000 annually into a multi-million dollar life insurance plan. Over 15 years, that totals $750,000 in premiums.
However, the benefits extend far beyond just the life cover.
For instance, this policyholder receives a $2 million life cover. After paying premiums for 15 years, you can begin taking 5% withdrawals annually while the policy value continues to grow. By the time you reach 85, you would have received over $1.3 million in income, all while the policy maintains a $2 million death benefit and still has a remaining policy value of $1.1 million.
Why consider a plan like this
When managing significant assets, simple protection is not enough. For those looking to maximise both security and opportunity, life insurance that includes investment options offers the only strategic solution. It allows you to grow your capital while simultaneously ensuring that your family’s financial future is safeguarded.
With estate tax rates in some countries reaching as high as 40%, having liquidity through life insurance can also be a crucial tool in estate planning, helping to cover taxes and other expenses without having to sell off valuable assets like property or investments.
Flexibility and financial access
One of the standout features of these plans is their liquidity. After a designated period, many policies allow for penalty-free withdrawals of up to 5% annually. This provides the flexibility to access your capital when needed—whether for unexpected expenses, new investment opportunities, or simply to enjoy the wealth you’ve built.
Why work with GPI Europe?
At GPI Europe, we provide our clients with access to life insurance solutions like this, that not only protect but also grow their wealth. We don’t just offer life insurance—we offer tailored opportunities designed to meet the specific financial needs of each individual. With years of expertise and a deep understanding of financial strategies, we can guide you through selecting the right policy that matches your goals. Get in touch with us today to explore how you can secure your financial future with the right life insurance plan.
Conclusion
So, how much does a multi-million dollar life insurance policy cost? The answer is… a tiny amount compared to the benefits it brings. It is the only strategic way to protect your loved ones, grow your wealth, and ensure that your legacy endures.
Want to learn more? Contact us now to speak with an advisor.
