Wealthy Investors and their advisors are constantly looking for investments that can deliver tax advantaged growth and capital gains. These people typically are ladies and gentlemen that have spent their entire lives investing in their own creations and businesses and are concerned with being taxed out of proportion to their risk, hard work and dedication.

Many of these risk taking, adventurous entrepreneurs often feel cheated when one half or more of their prosperity and success is taken from them through federal taxes, state taxes, city taxes, estate taxes and sales taxes.

In the United States Insurance grows tax deferred and delivers, if structured properly in an Irrevocable trust, a tax free and estate tax free distribution to the heirs. An alternative to regular insurance is Offshore Variable Universal Life Insurance. VUL is like whole life insurance but the risk/ reward position is the responsibility of the Insurance policy owner, not the insurance Company. Yes: Some extra risk for extra results. Offshore VUL has a tax deferred growth policy, with tax free and estate tax free distribution to heirs with the potential of our life policy having more significant returns.

An offshore VUL is similar to an onshore VUL except for the investment diversification alternatives that are permitted. Offshore VUL is USA tax compliant with some significant extra opportunities in the diversification of the assets allowed in the policy. Policies, to meet tax compliance with the U S Tax Code, require exceptional diversification of investments.

Until recently, most diversification was through investments similar to mutual funds, and brokerage accounts holding stocks, bonds, ETF’s and REIT’s ONLY.

An Offshore VUL offers investments in the standard categories of stocks, bonds and funds but ALSO ALLOWS INVESTMENTS THAT HAVE BEEN SELECTED BY THE WEALTHY THAT MAY RE-CREATE SOME OF THE SUCCESSES OF THEIR PAST PERSONAL CHOICES, with the additional intent to pass on these assets to heirs.

What can also be included in your policy?

Private stocks that may go public in the future.
Hedge funds, normally taxed each year.
A position in a successful offshore farm.
An art or auto collection that appreciates.
An offshore beach house.
An offshore rental property
Stock options to be exercised in the future.

An extra benefit to a private placement offshore VUL policy is privacy and asset protection. In most cases a greedy attorney in the US, cannot access the information about your policy nor the assets in your offshore policy. Offshore policies also allow for globalization of assets and currencies.

If you have significant assets that you want to pass to future generations through insurance and trusts, why not select some assets you already own that you want to be enjoyed by generations to come. Why should the successful be forced to use investments out of their control when they have assets that can outperform the normal retail products available?

Typically, Offshore life policies are re-insured by the largest and strongest Re-insurance companies in the world. Many offshore policies do not add sales and marketing cost to the re-insurance cost which may save 25 to 50% off the insurance, providing more insurance for less money.

In review, the offshore custom designed private VUL product is the most creative, flexible, and tax efficient vehicle in the world. Here is why:
1. Allows tax deferred growth.
2. Tax free distribution to heirs.
3. The funding of policy with brokerage accounts, mutual funds and (most important) personal assets and investments.
4. Confidentiality with asset protection.
5. Access to funds through cash withdrawal and/or loans with no tax liability.
6 The globalization of your assets and investments.
7. Lower cost insurance.

This product is not for everyone. A client should have a minimum net worth of between three million to five million and more. Offshore VUL also must be solicited, negotiated and underwritten outside of the United States. All policies are strictly underwritten by the insurance company and re-insurance company. It is important that the insured is healthy. There are many occasions that the spouse may be the most likely person to be insured. In some cases even one of the children can be the insured.