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.

Family Business Succession & Wealth Governance

Our PPLI Capabilities Domestic Private Placement Life Insurance

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 more about our capabilities in this special supplement. Read more about Domestic Private Placement Life Insurance here.

The life insurance products we use are specially priced for high net worth individuals; we use our buying influence to obtain the best possible underwriting along with best possible pricing. With complex funding situations, we believe that 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 the best achievable 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 M Financial Group, one of the nation’s leading financial services design and distribution companies. As an M Member Firm, CFG has a unique relationship with top life insurance companies and a number of advantages that position us to deliver differentiated solutions consistent with the objectives of our clients. 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 a process of acquiring internal retention from multiple companies and then strategically allocating reinsurance directly. The goal of our innovative approach is to reduce costs, save time, facilitate more favorable underwriting and create 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.

Private Placement Life Insurance is an unregistered securities product and is not subject to the same regulatory requirements as registered securities products. As such, Private Placement Life products should only be presented to accredited investors or qualified purchasers as described by the Securities Act of 1933.
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.

Securities Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer, Member FINRA /SIPC. CFG Business Solutions, LLC is independently owned and operated.

M Financial Group - Member Firms

As a Member Firm of M Financial Group, CFG has unprecedented access to best products and practices in life insurance planning, actuarial expertise with respect to large cases, and significant leverage in underwriting with major life insurance companies.

What's more, CFG has access to more than 25 proprietary products from six Partner Carriers available only through M Member Firms. M Financial's actuarial data base spans 30+ years of superior persistency, face amount, and mortality experience. M Financial has leveraged this data to drive lower policy charges for M proprietary life products. With access to these differentiated product offerings, designed and priced exclusively for high net worth clients, CFG can create, implement, and maintain customized solutions our competitors can't.

Furthermore, through M Financial's unique in-force management process, as new, less expensive products are created by life insurance companies, the pricing advantages of newer products often apply to M Financial clients, meaning a financial product that automatically gets best pricing in the future without having to be replaced.

CFG’s expertise, combined with M Financial pricing, is tough to match:

We coordinate advanced funding strategies with estate planning entities for best results (e.g. gifts, AFR loans, split dollar, third party loans, etc).
We use specialized products and institutional pricing, not retail.
We customize product features to improve performance.
We service client's policies by regularly reviewing in-force performance.
For accredited investors and qualified purchasers, we may recommend private placement life insurance products with customized investment strategies, as appropriate.
We manage complex reinsurance relationships.

Our experience reflects that nearly 70% of all life insurance policies in-force can be improved. CFG will provide a professional, objective, third-party assessment of the life insurance you own to help you determine if the policies are working as originally designed, performing as they should, and still suited to your financial goals. This service is provided on a fee basis and is an excellent starting point for your sophisticated insurance transaction.