Unveiling life insurance’s greatest myth:
is it a static annual expense or a dynamic asset
requiring active management?
When monitored and analyzed regularly,
like other types of financial assets,
life insurance can be a much more useful and productive
part of a client’s overall investment portfolio.
By Anthony C. de Bruyn and Philip M. de Bruyn
Because trust is a precious currency™
10000 North Central Expressway, Suite 1000 Dallas, Texas 75231 p: 214.360.9292 f: 214.360.9050 www.capitalplaninc.com
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Table of Contents
Executive summary
1
The prevailing, narrow view of life insurance – it’s an expense
2
Life insurance is an asset, providing risk/reward
opportunities that require management
3
The impact of a sustained low interest rate environment
5
Life insurance illustrations paint a false picture of security
6
Exacerbated problems for high-net-worth insurance consumers
7
There is a solution
8
Estate planning
10
True management mitigates the risk of catastrophic surprises
11
Insurance policies often change post-purchase
12
Partial list of factors that cause insurance policies to
falter post-purchase
13
In-force Illustrations: a polaroid picture of your policy
14
A Due Care approach to active management of significant
insurance portfolios
15
Due Care Reviews
16
Summary18
About the authors
20
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Because trust is a precious currency™
Executive summary
Many people think of a life insurance policy as an expense – a line item on their
budget: you cut the premium check once a year and you’re done. You’ve satisfied the
obligation and you’ll think about it again next year. This is a common attitude, even for
high-net-worth individuals who sometimes find themselves committing large sums to
insurance purchases.
In actuality, life insurance is not a static annual expense, it’s a dynamic investment – an
asset that requires proactive management in order to survive and thrive. Life insurance
contains an element of risk, its performance is not guaranteed, and the acquisition process
for insurance is not always as transparent as it could be. As such, life insurance is similar
to other investment vehicles. And like a stock or bond portfolio, a life insurance portfolio
requires constant monitoring, analysis and periodic decision-making to give it the best
opportunity to perform to expectations.
This is particularly true in today’s volatile, low interest rate economy. And it’s
particularly true for affluent individuals, for whom the element of risk is greater as they
may be investing larger dollar amounts.
For many individuals, the guidance provided by a qualified insurance advisor is
essential: one who understands the complexities of the life insurance landscape, and
understands the mechanics of all the various life insurance vehicles on the market.
These specialists have developed a process called Due Care, in which various insurance
companies, and the vehicles they offer, are carefully evaluated before purchase, then
monitored, re-evaluated, and altered, if necessary, over time. In essence, the insurance
advisor treats life insurance as an asset rather than an expense. And this approach can
help life insurance owners see to it that their portfolio of insurance assets performs to
their expectations over the decades.
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Because trust is a precious currency™
1
The prevailing, narrow view of life insurance
– it’s an expense
In the proverbial good old days of life insurance (before 1985), obtaining life insurance
was a fairly simple process. The consumer paid a schedule of periodic premiums
(usually annually) in return for a guaranteed death benefit, some guaranteed cash
values and a stream of non-guaranteed (but generally stable) dividends. These
dividends could then be used over time to reduce premiums or buy more insurance.
Once the insurance was purchased, all a person had to think about was paying the
premiums on time. There was no risk to be considered or new insurance product
options to be pondered. Life insurance was viewed as an expense, like paying electricity
bills or car insurance.
This traditional view of life insurance may have worked well for most people at the
time, but it was a narrow view that caused many to miss an opportunity to maximize
the performance of their life insurance policies.
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Because trust is a precious currency™
2
Life insurance is an asset, providing risk/reward
opportunities that require management
A life insurance policy is structured based on Current Assumptions which include a
variety of risk- and financially-based projections regarding the consumer’s Mortality –
meaning life expectancy – and Expenses meaning what it costs the insurance company
to keep the policy on their books. Current Assumptions also include the projected
interest rates that will prevail over the life of the policy. Collectively these assumptions
are presented to the consumer in a Life Insurance Illustration.
For Universal Life, which
has flexible premiums, policy
coverage remains in force as
long as the cash value remains
positive (the policy lapses when
the cash value goes to zero).
Beginning Cash Value
(+) Premium
(–) Loading Charges
(–) Mortality Charge
For Whole Life, the fixed
premium schedule ensures
a positive cash value for life.
(+) Interest Credit
(=) Ending Cash Value
(–) Surrender Charge
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Because trust is a precious currency™
(=) Surrender Value
3
Current Assumptions surmise the math behind how the policy is constructed. They are
initially based on the insurance company’s projected risk and expenses. Yet gone are
the days of the guarantees. Post-purchase, any or all of these Current Assumptions can
change as real life changes for the insurance company. The most pronounced example is
the historical decline of interest rates. In our prolonged low interest rate environment,
policies have sustained years of lower-than-projected interest rate credits. These credits
were projected to fund the ongoing livelihood of the policies. Without this cash flowing
in, the policies can’t survive. The funding has to be replaced somehow – usually in the
form of surprise premium increases for the life insurance owner. When life insurance is
managed as an asset, these surprises can be preempted throughout proactive Due Care.
The pricing of all life insurance policies
involves four basic factors: mortality,
investment earnings, expenses and taxes,
and persistency.
Life Insurance Pricing Factors
Policy Holder Perspective
Insurer Perspective
(Assumptions)
(Pricing Factors)
Mortality Experience + Mortality Margin
Mortality Charge
Investment Earnings + Interest Spread
Mortality Charge
Expenses & Taxes + Expense Margin
Loading Charges
Today, in a challenging economy marked by equity market
volatility and sustained low interest rates, viewing life
insurance as a static expense instead of a managed asset is
particularly precarious. Indeed life insurance contains a risk/
reward component; economic conditions change and policy
owners’ life expectancies and financial circumstances change,
and the life insurance vehicles available on the market change
as well (providing more flexibility and potentially improved
pricing). Like stocks, bonds and other types of financial assets,
life insurance must be regularly monitored, analyzed and
managed. Only then can it achieve, or exceed, the objectives
the policy owner has set for it.
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Because trust is a precious currency™
Even for the regular person
who is working with relatively
modest amounts of money, the
consequences of treating life
insurance as an expense rather
than an asset can be problematic,
to say the least. Consider this
theoretical case study:
Bob bought a $500,000 universal
life policy eight years ago, with
the idea it would be sufficiently
funded by this year, when he
planned to retire. But last fall, his
annual premium notice called for
a ninth payment of $4,200. This
was because the credited interest
rate had been reduced to reflect
the insurance company’s lower
portfolio yield due to continued
declining interest rates. In fact,
now it would take five more
annual $4,200 payments to keep
the policy in force. Since this
represented 60% more cash than
Bob had originally planned to
spend, he surrendered the policy
and collected the surrender value.
4
The impact of a sustained
low interest rate environment
Interest rates have a direct and indirect impact on life insurance companies, their
product offerings and existing policies. Rates have been declining for decades and we
really don’t know what will happen in the future.
Low rates create what is called Yield Erosion. Because insurance policy performance
(and the design of new insurance vehicles) relies inherently on earnings supported
by investment grade bonds and mortgages, Yield Erosion has an impact on most life
insurance policies.
Life insurance companies are essentially financial intermediaries. With premiums
received from policyholders, they buy investments such as bonds and repackage the
benefits into annuity and life insurance products. Ultimately, their products must reflect
the yields of the underlying investments, typically via changes in the crediting rate.
In addition, the yield generated by the investment portfolios of life insurance companies
tend to lag behind current (i.e., new money) interest rates by several years, due to the
varying durations of the bonds that comprise those portfolios. In a declining interest
rate environment (1980-present), this performance lag can reinforce the illusion that
these companies have above-average investment expertise and access that allows them
to pass along higher yields to their policyholders. The reality is portfolio yields, and
portfolio-based crediting rates, chase new money rates, and in this declining new
money rate environment, most crediting rates are under continued downward pressure.
It also means that if new money rates increase, portfolio yields and crediting rates may
continue to decline before rebounding, and then will lag the higher new money rates.
Particularly in such a challenging economic environment, proactive Due Care – or
more importantly a lack thereof – greatly influences the performance of any policy.
Policyholders have to take a hard look at options like altering investment allocations
(via variable universal life insurance) or whether to continue paying premiums.
This complexity underpins the fact that life insurance vehicles for high-net-worth
individuals require professional management. In a low interest rate environment, expert
assistance becomes ever more critical. Savvy insurance advisors can make their clients
aware of the impact of the rate environment on their policies, help them set reasonable
expectations for the future, and guide them in developing an appropriate course of
action for each client’s unique situation.
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Because trust is a precious currency™
5
Life insurance illustrations
paint a false picture of security
As part of the sales process, a traditional insurance agent attempting to sell a policy
will provide what is commonly referred to as a life insurance illustration. An illustration
typically provides columns of numbers listing the annual premium and the illustrated
non-guaranteed current assumption cash values and death benefits, for every year the
policy is illustrated to remain in force, currently up to a maximum age of 120.
Illustrations, however, are not a snapshot of certainty. Instead, they are projections that
can create a false sense that the proposed policy will invariably perform as originally
illustrated. However, the illustrations do not always become reality—for example; the
decline in interest rates over the last few decades has affected insurance companies’
return on investments, adversely affecting the performance of their policies via reduced
crediting rates.
Another reason illustrations may be misleading is that they are
seldom updated post-purchase. A Due Care insurance advisor will send
clients current illustrations each year. These are commonly called in-force
illustrations and are based on updated current assumptions including the
current crediting rate. However, traditional agents are in no way required
to keep clients up to date, and so a wide majority don’t. Without annual
updates, an original illustration quickly becomes obsolete.
In addition, some illustrations may not be considered supportable. They may be backed
by riskier assets, which an experienced insurance advisor should be aware of and
communicate to the client the additional risk embedded in the illustrated numbers.
Another reason illustrations may be misleading is that they are seldom updated
post-purchase. A Due Care insurance advisor will send clients current illustrations
each year. These are commonly called in-force illustrations and are based on updated
current assumptions including the current crediting rate. However, traditional agents
are in no way required to keep clients up to date, and so a wide majority don’t.
Without annual updates, an original illustration quickly becomes obsolete.
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Because trust is a precious currency™
6
Exacerbated problems for
high-net-worth insurance consumers
Taking the narrow view of life insurance can have negative repercussions for almost
everybody. But because of the potentially larger financial commitment, high-net-worth
individuals are even more susceptible.
With larger sums of money at risk, decisions on life insurance tend to have a big impact
on multigenerational wealth. That means more risk and a greater need for insight
and guidance regarding the design and selection of insurance vehicles and insurance
companies, as well as the need for diversification within an insurance portfolio.
In particular, when a family has more than $5 million of insurance assets,
diversification of their insurance portfolio becomes crucial. That’s common practice
when planning an investment portfolio, but typically not for an insurance portfolio.
To do this successfully, families need the expertise of an insurance advisor with a
wider purview who can manage their insurance as an asset, not an expense. For many
high-net-worth individuals, their insurance portfolios are larger than their investment
portfolios. They are taking on much more risk, yet are seldom offered good advice
about the importance of diversification. Insurance policy performance can vary from
year to year, company to company, and policy type to policy type. The most prudent
way to mitigate this risk and volatility is to diversify into several insurance providers
and possibly several insurance product types.
But high-net-worth buyers are different in other ways, too. They tend to be healthier
and live longer. For decades, high-net-worth individuals had to fund their insurance
needs with vehicles designed for the broader, less affluent population – a risk-pool
which historically has been less healthy and has experienced shorter life expectancies.
But because high-net-worth individuals make up a healthier pool of insureds, to an
insurance company, they represent a more attractive client. They’re coveted as clients
because they pay premiums on time and keep their policies in force. And they represent
a more profitable customer—because larger policies provide greater revenue, yet cost
no more to service. Thus, off-the-shelf insurance products tend not to be beneficial
for high-net-worth and corporate clients.
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Because trust is a precious currency™
7
There is a solution
There is a solution for individuals who want to get the most out of their life insurance
assets. It’s called Due Care, and when applied properly by life insurance advisors
committed to advocating for their clients, it can first, help individuals choose the right
insurance company/companies and the right policy/policies during the initial purchase
process; and second, help them continue to make the right decisions regarding life
insurance over the course of many years. In contrast to the buy-it-and-shelve-it
approach, Due Care is all about establishing a relationship dedicated to making smart
purchasing decisions, then monitoring policies and communicating the correct strategy
with the client over time.
An insurance advisor employing Due Care will focus all three legs of the insurance
stool: company, product and illustration. If any one of the three is weak, the stool will
fall. The three must be balanced against one another and the strength of one leg cannot
by itself negate weakness in one of the others. For instance, a company with an excellent
financial rating may offer products that are designed based on overly aggressive
projections, or are not appropriate for a particular consumer. In this case, the product
leg is weak, and so the stool is unsound. When all three legs are sturdy, the consumer
has the right policy for his or her current situation and objectives (i.e. product), realistic
expectations for how it will perform (i.e. illustration), and confidence the insurer will be
around when the time comes to pay a claim (i.e. company).
Promises vs. Performance
n
tio
Pr
od
tra
us
uc
t
Ill
Carrier
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Because trust is a precious currency™
8
When it comes to choosing the optimal insurance company, Due Care insurance
advisors research, analyze and assess a company’s key strengths and risk factors, the
reasons for differences in ratings among services, and other details relevant to the
particular purchase being contemplated.
Life insurance products are some of the most complex financial vehicles available.
Correctly matching the appropriate product with the client’s specific risk/reward profile
is essential.
Insurance advisors who employ the Due Care approach can usually provide accurate
answers to these kinds of questions about insurance companies, their products
and illustrations:
Are pricing or return assumptions reasonable and sustainable?
What risk components are being passed to the policyholder?
How does the product perform under different scenarios, including lower
crediting rates?
Has the company increased policy charges to in-force policyholders?
Has the company passed excess profits back to in-force policyholders?
The answers to these questions provide valuable clarity during the product
evaluation process.
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Because trust is a precious currency™
9
Estate planning
Particularly for high-net-worth clients, integrated estate
planning strategies are often employed in conjunction with
life insurance. Therefore, it is critical for these types of clients
to seek guidance from Due Care insurance advisors with the
knowledge, resources, structured processes, and analytical
capabilities to make such clients aware of these critical
considerations, and who can assist them in assessing their
impact on making appropriate policy decisions.
By probing more deeply, Due Care insurance advisors can
manage their clients’ expectations and help guard them
from unnecessary risk. This proactive strategy for managing
life insurance assets provides the added flexibility that
helps policyholders discover more uses for their insurance
assets, including:
Facilitating business succession planning
Covering key employees
Designating multiple beneficiaries
Structuring death benefits as investment returns
Making gifts for life insurance premiums
Placing life insurance in irrevocable trusts
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Because trust is a precious currency™
Life insurance story #2:
A family had assets totaling $350
million, half in illiquid real estate,
half in stocks, bonds, etc. When
completing her estate plan in 2007
(the husband was deceased), the
mother’s estate planning team
determined that purchasing life
insurance was not necessary
because they thought when the
time came, sufficient capital could
be acquired by borrowing against
the real estate assets. But when
she died unexpectedly in 2008,
the seizure of the capital markets
brought on by the financial crisis,
made it impossible to borrow
against the real estate assets.
Thus, an important component
of the estate plan was no longer a
viable option. In the worst market
since the Great Depression, the
capital for the estate tax due had
to be raised by selling stocks at a
loss. This process cost the estate
approximately $18 million. More
than likely, a Due Care insurance
advisor would have foreseen this
possibility and recommended
acquiring life insurance at a
fraction of the cost of the realized
losses on her investment portfolio.
10
For high-net-worth clients, this kind of flexibility can be
even more valuable, allowing them to use their life insurance
assets in creative ways that safeguard their wealth for future
generations. For example, many clients who have benefited
from advice from an insurance advisor find that they can
manage capital within their life insurance policies and
allocate a portion of the policy returns to an insurance
company for the good of their family business or favored
charities, instead of paying income taxes. Many have also
learned that the ability to make withdrawals up to cost
basis without being exposed to income taxes or penalties,
and changing policy ownership, represent opportunities to
improve life insurance performance.
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Because trust is a precious currency™
Life insurance story #3:
A Single Family Office (SFO)
undertook a life insurance
portfolio review with a life
insurance advisor following
the death of the patriarch.
The portfolio was comprised of
six policies (five survivorship
whole life and one variable
universal life) totaling $100
million in death benefit.
Following a thorough due care
analysis, the SFO replaced one
of the survivorship whole life
policies, changed the funding
on the remaining whole life
policies to take into account
the lower current dividend
rates, and updated the asset
allocation on the variable
universal life policy. The
modifications saved the family
money and positioned the
policies to perform better
going forward. The SFO also
committed to reviewing the life
insurance portfolio annually
to identify opportunities for
additional enhancements.
11
True management mitigates the risk
of catastrophic surprises
As discussed earlier in this paper, there’s a widespread and dangerous
misunderstanding that often transpires during the acquisition of life insurance policies.
High net worth families and their advisors are led to believe that life insurance
illustrations are illustrative of what will happen versus what may happen. In truth an
illustration is simply a projection – just as you might project the trajectory of your
investment portfolio, all the while knowing there are no guarantees for its future
performance.
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Because trust is a precious currency™
12
Insurance policies
often change post-purchase
Two dysfunctions ensue post-purchase. First, the family leaves the experience
believing they’ve completed a transaction: their only remaining responsibility is to
pay the premiums every year. They haven’t been educated about the myriad factors
that cause insurance policies to change post purchase; factors that require active and
thorough monitoring.
Second, the insurance agents selling the policies have moved onto to the next sale: they
lack both the business processes and the commitment to doing the post-purchase Due
Care that keeps a large policy viable decades into the future.
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Because trust is a precious currency™
13
Partial list of factors that cause
insurance policies to falter post-purchase
Overly aggressive point-of-sale illustrations
Increase or decrease in interest rates
Adjustments to mortality assumptions
Increase in policy’s internal expenses
Change in lapse rate for the total pool of policy holders
Change in credit rating of the insurance company
Mispricing of the original product by the insurance company
Entire policy series withdrawn from the market
National and global economies
National and global financial markets
In addition to the possible changes noted above, changes in family net worth, marital
status or business status are highly relevant to the process of active management. If the
family’s needs or goals change, the policies can be proactively reconfigured to meet
their new or future needs.
Also, similar to a managing a family’s investment portfolio, change itself isn’t always a
problem. With active, ongoing management, a Due Care insurance advisor will spot
changes in time to make proactive, strategic decisions about how to maintain the
policies and help ensure they are viable when a family’s planning comes to fruition, i.e.
when estate taxes are due or a business transition kicks into high gear.
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Because trust is a precious currency™
14
In-force Illustrations:
a Polaroid picture of your policy
It is crucial to understand the difference between an In-force Illustration and true active
management. An In-force Illustration is akin to a Polaroid picture: it’s convenient for
the photographer – the insurance agent – but not a durable capture of the situation at
hand. Envision a family using a Polaroid camera instead of a video camera to capture
their daughter’s wedding: how can they reflect on the full breadth and all its relevant
nuances?
An In-force Illustration simply predicts future performance based on where the policy
stands today. It does not offer a comparison between the original projections and the
current health of the policy. In the world of budget vs. actual, an In-force Illustration is
a look at the actual without context of the original budget. It’s similar to looking at an
investment statement and judging your portfolio’s viability without taking into account
your original investment, or your long-range goals for the growth of the assets.
Also, an In-force Illustration does not account for the subjective variables and goals
around which a family purchased the product in the first place. It does not reassess
how these goals have changed over time. A true review process will evaluate and
communicate all of these factors to the client and their advisory team. (Also see previous
section in the paper: Life insurance illustrations paint a false picture of security.)
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Because trust is a precious currency™
15
A Due Care approach to active management
of significant insurance portfolios
Historically, insurance companies absorbed much of the global economic risk that
could impact a policy’s performance. Now that risk is born largely by the policy owner.
For insurance portfolios with a combined total death benefit of $5 million or more,
each policy within the portfolio must be thoroughly reviewed every year. In addition,
the family should receive an executive summary noting the current state of the policy,
and the family and their advisors should review and sign the summary.
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Because trust is a precious currency™
16
Due Care Reviews
Each annual review of a family’s policies should include the following elements.
Executive Summary to include:
Date of purchase
Mechanics of type of insurance purchased
Recap of the family’s original purpose and goals for the insurance
Recap of variables that could impact policy post-purchase
Promise versus performance analysis: budget vs. actual
Cash Value: budget vs. actual
New In-force Illustration
Market analysis of advances in new policy design
Course adjustment options if necessary
Restatement of the structure of the policy
Confirmation of family’s original goals for the policy
Acknowledgement page to help confirm client and trustee understand original
acquisition details and current performance
Signature page for client and trustee’s acknowledgement of receipt and review
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Because trust is a precious currency™
17
Summary
Life insurance is an asset, not an expense. As such, it must be purchased properly,
then monitored and administered like any other financial asset. Determining the right
life insurance strategy, especially for high-net-worth individuals, requires finding the
balance between promise and performance. Expectations are most likely to be met
when three crucial factors are taken into account: the insurance company, the type of
product they provide, and the assumptions inherent in the illustration. Even individuals
with the commitment and capacity to understand and analyze the complexities of
insurance companies and their vehicles can benefit from the professional advice and
expertise of a life insurance advisor.
Due Care insurance advisors are able to develop strategies for clients that mitigate the
risk of surprises. Policies they design will tend to perform as promised, because they are
based on reasonable estimates of the client’s expected future mortality and risk/reward
tolerance. With these and other details, and the results of a deep analysis of any policy
acquisitions or changes being considered, both the family and the advisor will be well
positioned to navigate the complexities of owning a life insurance portfolio in today’s
economic and financial landscape.
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Because trust is a precious currency™
18
About the authors
Anthony C. de Bruyn, Chairman, and Philip M. de Bruyn, President and CEO, lead
Capital Plan Inc., a Dallas-based firm of insurance advisors and risk management experts
who are enthusiastic proponents of the “due care” approach to life insurance strategy,
particularly for high-net-worth clients.
The advisors at Capital Plan believe the information needed to manage a life
insurance portfolio is similar to that needed to manage a pension plan. As such, they
work to create portfolio balance through insurance company and policy analysis,
policy design and diversification.
At Capital Plan, current clients are always just as important as new ones. Their process
is tailor made to manage assets, a “due care” concept they have followed for decades, long
before it became known in the industry at large.
Capital Plan routinely designs and implements solutions for clients to address lack of
diversification, policies left unmonitored after acquisition, and the unavoidably subjective
nature of insurance illustrations. Today’s volatile economy dictates the following approach:
opportunities in the life insurance market should be pursued in conjunction with expert
insurance advisors who understand the complexities of the insurance landscape and
mechanics of the industry’s products.
The advisors at Capital Plan believe that, particularly for individuals with more than $5
million of insurance assets, diversification of both product and provider is crucial. Clients
should be able to shop where they want, and not be limited
to the products of a single insurance company.
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Because trust is a precious currency™
19
Capital Plan distinguishes itself by providing superior life insurance policy management
services to high-net-worth individuals, corporations and trusts, including:
An emphasis on due care prior to purchase.
The pooling of buying power with other members of M Financial Group, to gain
access to all major life insurance company products.
Proactive supervision of policies and insurance companies after purchase.
Creation of a properly-managed portfolio for which premium flows are constantly
monitored to achieve targeted coverage. This provides Capital Plan clients with a
significant funding advantage.
Capital Plan has pioneered a Due Care program, The Capital Protection Package™, that
includes a thorough ten-point annual check system performed on every client’s insurance
portfolio. In addition, each policyholder is provided with annual policy reports that deliver
ongoing monitoring and administration with regard to tax law changes and economic
conditions that may impact policy choices and free-market access.
The authors would like to thank M Financial Group for its support in connection
with this article.
For more information, visit capitalplaninc.com or call 214-360-9292.
Securities offered through M Holdings Securities, Inc., A Registered Broker/Dealer, Member FINRA/SIPC. Capital Plan is
independently owned and operated member firm of M Financial Group. Please go to www.mfin.com/Disclosurestatement.htm for
further details.
Copyright and Trademark 2015® Capital Plan, Inc. All rights reserved.
Because trust is a precious currency™
20