How a Swiss High Net Worth Female Optimised Her Retirement with a Lombard Loan-Purchased Life Policy

These concerns weighed on Helena's mind, but she wasn't sure how to solve the problem. She already had a substantial Swiss private bank investment portfolio, but the yields were low and wouldn't provide the additional retirement income she wanted.

Seeking Expert Help

Looking for solutions, Helena scheduled a meeting with her financial advisor to discuss how she could get more income for her retirement.

Her advisor listened to her concerns and goals. It became quickly apparent to them that leveraging her existing assets in combination with a customised life insurance policy financed through attractive Lombard lending could provide Helena with her ideal retirement setup. They set about putting in place the missing piece of the financial jigsaw.

Crafting the Retirement Plan

The advisor recommended the Protected Income for Life solution from Capital for Life, which was expertly designed to deliver steady, guaranteed income for Helena. It is designed to supplement the variable and fluctuating income from her US$3,800,000 discretionary managed investment portfolio consisting mainly of stocks and bonds managed by her Swiss bank.

To fund plan, Capital for Life arranged a US$1 million Lombard lending facility from a Swiss private bank, to be drawn down at US$200,000 each year for 5 years. Each US$200,000 would buy a portion of the cash value life insurance policy that locked in future income payments for Helena. The Lombard loan was secured against Helena’s existing portfolio.

The Lombard lending facility meant she could make the investment she wanted to complete her retirement income planning. She used her high salary and bonuses to cover the Lombard loan interest payments and repay the loan in a flexible way over the next few years.

As a bonus, she will also leave the capital and income benefits of the life policy to her close family members who will be beneficiaries of a trust set up by Capital for Life to hold her Protected Income for Life policy. This will mean her beneficiaries will not pay at least US$400,000 estate tax on her life policy.

From meeting with Helena to achieving the solution took around 6 months.

The Successful Outcome

Helena was thrilled with the solution that her adviser had created with Capital for Life’s help. Not only did it maximise her assets to generate additional retirement income of US$50,000 a year through customised financing, but it also diversified and reduced her investment risk of her existing Swiss bank portfolio.

The advisor had never considered using cash value life insurance in this innovative way for retirement planning. But for high-net-worth individuals like Helena, this bespoke solution unlocked the full potential of her assets to deliver complete peace of mind.

Helena is now excited about retiring knowing her income is protected thanks to her advisor and Capital for Life's holistic approach. Their expertise in leveraging cash value life insurance provided Helena with the perfect product to complement her existing portfolio and achieve her retirement goals.