Our Core Technology: Policy Unification and Pairing
We begin the process by first integrating all the multiple insurance policies in the trust into one cohesive portfolio with interoperable assets to employ a centralized resource allocation and utilization function.
We then apply as many financial/investment theories and methodologies as are adaptable to insurance, to continually : reduce costs and risks, increase productivity and suitability, and to enhance compliance.
Key Breakthrough Methodologies:
In most cases, no two policies have identical features, and have even less identical features over time. Their type, structure, attributes, internal costs, crediting rates, functionality, and options are different. In many cases, those differences can be used to make a difference.
The very basis for diversification is based on this axiom.
Based on this axiom , we take it a step further and organically leverage and harvest the policy heterogeneities (i.e., dissimilarities or disparities) and interplay-synergies, using a process comprised of the following elements:
( Cross Policy) Internal Sourcing: sourcing portfolio-wide benefits from the lowest-internal-cost policy(ies). For example, sourcing "mortality" coverage (net at risk: death benefit minus cash value) from the existing lowest-cost carrier(s), thereby delivering the same amount of "mortality " coverage in the aggregate, but paying less for it.
All of this is done organically, meaning: using only those policies that already exist in the trust, not replacing them with new coverages.
( Cross Policy) Strategic Locationing, Leveraging, and Portfolio Tilting: to provide higher investment productivity, putting premiums and cash values to their highest and best uses, by: a) strategically allocating new incoming premiums, and/or b) migrating cash values to other policies or to side-fund trust accounts outside a policy. These efforts create the maximum death benefits for beneficiaries and/or cost reduction to trust/ grantors.
Note: We provide “ non-securities based underpinnings only.”
( Cross Policy) Rank Ordering: when withdrawing from, migrating into or terminating/settling a specific policy, executing in the most efficient order ( maintaining the best and liquidating the worst first/ avoiding or delaying any taxation or liquidation expenses) , such as: when rebalancing, truing-up, shoring-up, stepping-down, moving or life-settling coverages.
(Cross Policy) Efficiency: not wasting any policy value, quality, or capability. (For example, creating an external synthetic "cash value death benefit" if currently employing a level death benefit option, when appropriate and economical.)
(Cross Policy) Maximizing Full Capacity / Repurposing/ Pairing: using the coverages to their maximum capacity when most advantageous on a cross policy basis, such as: suspending vanishing the premium in a specific targeted policy, restarting the full premium payment to get maximum Paid Up Additions death benefit. In other words, it entails extracting maximum utility from coverages by accessing cash values, and repurposing death benefits/ cash values for previously unanticipated needs, goals, or applications.
In some cases, the purposing of the policy is shifted from providing estate tax liquidity to (cash value) funding or ( death benefits ) hedging mortality risks in existing or new estate planning tools and structures. Multidisciplinary expertise is crucial in pairing each specific policy with the appropriate estate planning tool or structure, to allow for maximum leverage of the policy.
(Cross Policy) Capitalizing on all Rights, Features, Riders and Options: taking advantage of all contract elements when "in the money," such as: forcing death benefit increases even when the grantor(s) is/are uninsurable.
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