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There are many benefits of a Bastion Life Flexible Premium Variable Life Insurance policy which include:
Asset Protection:
Under Cayman Islands' law, the policy assets are protected from claims by other creditors. In the event of the insolvency or bankruptcy of the insurance carrier, the segregated accounts are not subject to those claims, and a policyholder (or the insured) is not subject to claims of creditors.
In contrast, most U.S. states provide little protection to insurance policyholders. In fact, a U.S. person who purchases a policy issued by a domestic carrier receives protection only of his or her residence (by state law) against claims of creditors.
Death Benefit Coverage
The reinsurer for Bastion Life is Munich Re - the largest reinsurer in the world.
Brokerage Fees
The internal fees of a Bastion Life policy are considerably less than the fees of U.S. or European domestic insurance carriers.
As with most countries, a U.S. carrier has a distribution system consisting of a large management team, regional and district offices, and commissions to agents and managers, among other costs.
Taxation Benefits
Bastion Life benefits from the no-tax jurisdiction of the Cayman Islands (tax is levied on expenditure rather than income) whereas a domestic carrier, such as in the U.S., is subject to subchapter L of the Internal Revenue Code.
IRS and SEC Compliance
Bastion Life will not enter into arrangements or structures that will or can cause problems with the U.S. Internal Revenue Service, the Securities and Exchange Commission, or similar regulatory entities in other countries.
Asset Management
Subject to certain requirements, prior to commencement of a policy, the policyholder may select the asset manager or managers.
No State Taxes
U.S. state premium taxes of 2% to 4% are avoided by the payment of the lesser 1% Federal Excise Tax.
Worldwide Investment Opportunities
Offshore Variable Life policyholders have access to all international investment offerings such as fixed interest, equities, hedge funds, real estate, private placements and alternative investments.
Policy Ownership
If the policy is owned by a foreign trust or foreign limited liability company, the cash value will have much greater protection from the claims of domestic creditors of the policy holder.
Death Benefit Payments
Death benefits paid to a foreign trust after the death of the U.S. insured can be invested free of U.S. tax to the U.S. beneficiaries until all or some of that income is distributed to the beneficiaries.
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