Exclusive life insurance
products for affluent individuals and businesses
Asset Preservation
Techniques
utilizing life insurance
Evaluation
of current life insurance performance
Life insurance for
global citizens
Cost effective
retention plans
for companies
OUR STRATEGIES
Life Insurance Audits
The performance of life insurance policies is almost always different than the original illustration.
The performance of life insurance policies is almost always different than the original illustration.
Wealth Preservation
There are often times when a significant estate tax is due even after taking advantage of all the available planning techniques.
There are often times when a significant estate tax is due even after taking advantage of all the available planning techniques.
Retain, Recruit, & Reward Key Executives
Many owners of privately held businesses are reluctant to give away equity.
Many owners of privately held businesses are reluctant to give away equity.
Premium Financing
Borrowing to pay larger premiums should be considered. It may be a more cost effective way to fund a policy.
Borrowing to pay larger premiums should be considered. It may be a more cost effective way to fund a policy.
Executive Retirement Plans For The Highly Compensated
Highly compensated executives typically have pension or 401(k) limits. As a result, their savings opportunities may be limited.
Highly compensated executives typically have pension or 401(k) limits. As a result, their savings opportunities may be limited.
Retirement Income
A cash accumulation life policy can be used to generate additional tax-free retirement income. Traditional retirement accounts are limited and restrictive.
A cash accumulation life policy can be used to generate additional tax-free retirement income. Traditional retirement accounts are limited and restrictive.
Buy/Sell Funding Arrangements & Key Man Insurance
Buying out a partner or replacing a key man can be very expensive and come at the wrong time.
Buying out a partner or replacing a key man can be very expensive and come at the wrong time.
Disability Income Replacement
Disability income preservation is a key component of a financial plan addressing the risk of lost income due to an accident or illness during income producing years.
Disability income preservation is a key component of a financial plan addressing the risk of lost income due to an accident or illness during income producing years.
Charitable Giving
Life insurance may be an effective way to leverage a charitable gift into a much larger donation.
Life insurance may be an effective way to leverage a charitable gift into a much larger donation.
Private Placement Life Insurance & Annuities
Ultra-affluent families utilize Private Placement Life Insurance and Annuity Investment Accounts to shield traditional and alternative asset class investments from current period taxation.
Ultra-affluent families utilize Private Placement Life Insurance and Annuity Investment Accounts to shield traditional and alternative asset class investments from current period taxation.
Long-Term Care
Long-term care planning is a top risk cited by affluent individuals due to increased longevity, complex family dynamics and the associated care expenses.
Long-term care planning is a top risk cited by affluent individuals due to increased longevity, complex family dynamics and the associated care expenses.
International Business
Wealthy individuals who travel extensively and have meaningful economic ties to the U.S. may have a need for life insurance coverage to safeguard their financial interests at home and abroad.
Wealthy individuals who travel extensively and have meaningful economic ties to the U.S. may have a need for life insurance coverage to safeguard their financial interests at home and abroad.
Your Questions
Often times individuals purchased insurance policies with unrealistic assumptions. These policies may lapse if additional premiums aren’t paid. In addition, mortality rates have improved dramatically over the years. We may be able to either fix your existing policy or look at newer policies that may provide significant cost advantages and other benefits. Depending on your goals there may be an opportunity for you to either reduce your premium outlay or eliminate it completely without reducing the death benefit. A simple and objective audit will reveal your options. You may also be able to increase the death benefit without increasing the premium.
M was founded on the principal that the affluent buyer is a better health risk than the general public because they tend to take better care of themselves and can afford better healthcare. In fact, this has been the experience over many years. As such, the insurance products designed by M for the affluent generally require lower premiums than what you can get elsewhere.
Not only can life insurance provide the least expensive source of cash to pay estate taxes, but it can also provide meaningful tax-free retirement income for extended periods of time. The after-tax IRR’s may be very compelling.
Premium financing may be more cost effective and minimize your out of pocket cash flow, while keeping more cash available for other investments. For premiums in excess of $200,000, financing the premium should be considered as an alternative.
Group disability plans typically replace 60% of your salary up to a maximum of $15,000 per month. You or your company may consider implementing a supplemental long term disability plan which would be layered on top of your group plan to get you a much higher income replacement percentage. Additional advantages also include probability, guaranteed premium rates, and additional catastrophic coverage.
Depending on the type of company and executive compensation levels, it may be something to explore. We have over 40 years of experience in the design, funding, communication, administration, and recordkeeping for these plans.
This is a common problem we see in the industry. The biggest concern is your policy could lapse. We developed a long term service model providing each client with a policy review on an annual basis. This helps eliminate the risk of lapsing and monitors the policy’s efficiency.
If you are charitably inclined, using life insurance for charitable purposes is a great way to not only continue your legacy, but also multiply the amount of your donation. Depending on how the gift is structured, you can get either a current tax deduction or a much larger estate tax deduction later.
The life insurance products provided by M Financial are likely to be superior to those provided in other countries. Foreign nationals need to meet certain criteria to qualify for life insurance in the U.S. Quality insurance companies like Prudential, John Hancock, Nationwide, etc. issue life insurance policies for foreign nationals.
A restrictive executive bonus plan could be a great solution. Contributions may be currently deductible to the company. Different vesting schedules may be utilized. The plan can be structured as a defined benefit (i.e. $100,000 per year at retirement) or a defined contribution (percentage of a participants compensation). Contributions are far more flexible than they are in a qualified plan. There is no bankruptcy risk as there is in a traditional non-qualified plan, nor are there any 409A requirements.
Depending on your objectives and investment risk tolerance, the various types of life insurance policies are discussed in our Strategies section. They include term, whole life, universal life, indexed universal life, variable universal life, and no-lapse guarantee universal life.
Depending on the value of your estate and the number and health status of your children, there may be strategies to reduce your taxable estate even after all the planning you have done.
Your life insurance policy may be a very tax efficient source of retirement income. If you have an existing policy, we can help you determine how much income you can take out of the policy while still keeping some of the death benefit in place.
M Financial By The Numbers
May 2022
Contact Us
3200 Park Center Drive, Suite 550
Costa Mesa, CA 92626
P: (949) 209-9851 | F: (949) 209-9811
Email: Info@tmhllc.com