Don has a relationship with a money manager who has done very well for Don with hedge funds and alternative investments. However, the investments generate a lot of taxable income for Don. Don came to CFG for a solution. CFG created an insurance dedicated fund inside of an insurance product and the investment advisor was approved as a fund manager by the life insurance company. New insurance on Don (in a new insurance trust) has been funded with loans from Don . The earnings on the cash values, are allocated to the investment advisor’s fund, and are not taxable to Don. Don’s polices are performing well and his investment advisor is managing the cash values.
CFG Business Solutions
Life Insurance Solutions Family Business Succession & Wealth Governance
CFG Business Solutions
Family Business Succession  

CFG Business Solutions is one of the few firms in the U.S. with significant expertise in large life insurance transactions for high net worth individuals, including foreign citizens subject to estate tax on U.S. assets. CFG can assist you, or your advisors, with a review of existing policies, and as a resource to help you make informed decisions about products, pricing, and funding strategies available today. Download and read what Private Wealth Magazine had to say here.

The life insurance products we use are specially priced for high net worth individuals; we use our, buying influence to obtain best underwriting along with best pricing. With complex funding situations, the CFG process is strategic, transparent, and easy to understand for you and your advisors.

As we do with our succession planning practice, we collaborate with you and your advisors to create best results. We never use high pressure sales techniques. We believe life insurance products should be integrated into a planning process in order to take maximum advantage of the income and estate tax benefits of life insurance.

CFG is a member firm of the elite M Financial Group, the largest life insurance buying syndicate in the U.S. As an M member firm, CFG has a unique relationship with most top life insurance companies. Read more in the sidebar.

 

Large Case Management

  • Marketplace Capacity: All insurance companies have limits, called “internal retention”, on the amount of insurance they are able to write for one policyholder. Therefore each company reinsures excess risk when underwriting larger cases. CFG has pioneered a process of acquiring internal retention from multiple companies and then strategically allocating reinsurance directly. Our innovative approach reduces cost, saves time, facilitates more favorable underwriting and creates better results.
  • Funding Strategies: We assist you and your advisors in deciding best strategies for funding large insurance premiums without incurring gift tax. This can include split-dollar and loan arrangements, as well as third-party financing strategies. We coordinate the implementation of these sophisticated techniques with your team of attorneys, CPAs and financial advisors.
  • Private Placement Life Insurance: We construct Private Placement Life Insurance products for qualified individuals and entities with a preferred money manager designated to manage the policy's cash values.
  • Comparison Pricing: Realistic comparison pricing is hard to obtain for the large life insurance case. Through our membership in the M Group, we offer pricing and products not available in the general marketplace. For example, M mortality pricing, instead of retail pricing, provides distinct advantages when assembling a large case. We also have M Financial underwriting support that works directly with insurance company underwriters for best results.
  • Specialized Staff: We have staff specifically dedicated to providing quarterly or annual monitoring of policies to ensure that performance is meeting expectations.

 

 
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