Basic Services

• Workouts
  • Defined as: reconfiguring the portfolio components, to reduce the loans/lien commitments
  • Example: extinguishing loans/liens, or unwinding premium financing arrangements, without out-of-pocket outlay.
• Retrenchments, including Premium Relief
  • Defined as: reducing or eliminating outlays, scaling back benefits, or paring away non-
    essential features.
  • Example: reducing or eliminating premium outlays, reducing death benefits or cash value accumulations levels, removing “good to have,” but not “mission critical” features.
• Portfolio Fortifications
  • Defined as: securing and strengthening weakened portfolios
  • Example: securing coverages from carriers with higher financial rankings; adjusting the premium outlay to a level which will guarantee the policy will not lapse, even if the cash value is not adequate to cover the policy’s expenses.
• Rehabilitations
  • Defined as: restoring the components of portfolios with failed strategies, or which weren’t maintained properly, to their initial design, and state of soundness.
  • Example: reinstating the original guarantee of the minimum premium payment sufficient to keep the coverage in force for life, even if the cash value is not adequate to cover the policy’s expenses or restoring its tax advantaged status.
• Rescues
  • Defined as: relieving clients from unsuitable arrangements, such as: premium financing arrangements, or relieving from unnecessary
    obligations.
  • Example: insurance coverage placed into a structure to make the premiums tax-deductible, which has become obsolete since the IRS disallowed it, or when keeping a policy with substantial loans outstanding in force to avoid a taxable gain.
• Settlements
  • Defined as: selling unwanted or inefficient policies for more than the carrier would pay if the policy was surrendered. Example: if the business was sold the need for
    the coverage would no longer exist, or if the policy is overpriced or underperforming.
• Transfers
  • Defined as: tactics for transferring  coverages from one entity to another. Example: Transferring ownership from inside an irrevocable life insurance trust, or inside a qualified plan, to another entity.
• Exit Strategies
  • Defined as: the long-term strategy for removing a policy from a financing arrangement or entity at a specific date. Example: ending a premium financing arrangement or transferring a policy into another entity.
• Updates
  • Defined as: adjusting the coverage to accommodate the present insurance need and circumstance. Example: adding or reducing insurance cover- age, or migrating the coverage to the life of whom it is currently needed.
• Optimizations
  • Defined as: increasing the portfolio efficiency and effectiveness. Example: Increasing the death benefits, and/or cash values at specific intervals, adding features, while in some cases lowering the premiums.
    

Advanced Services

• Portfolio Funding
  • Defined as: finding alternate premium sources, Example: applying the portfolio cash values as source for the premium, or “walled off/dormant” pension plan/IRA assets to pay the premium.
• Liquidity Sourcing
  • Defined as: accessing the portfolio as a source of liquidity.
  • Example: Loaning/withdrawing funds from the portfolio, even when in some cases contained within a seemingly “walled off” irrevocable insurance trust.
• Tax Advantaging
  • Defined as: structuring the coverages to use pre-tax funds to pay the premiums , or to afford the coverages special tax treatment when with- drawing funds or liquidating.
  • Example: premiums of coverages within a retirement plan, or maintain the tax deferral and tax-free death benefit advantages after removing a policy from within a retirement plan.
• Simplifications
  • Defined as: reducing the portfolios’ complexity, by reducing the steps the portfolio requires, hurdles the portfolio needs to overcome, and level of customized guidance needed.
  • Example: eliminating the tax leverage, complex financing arrangements, or exit strategy burden.
• Portfolio Goals/End Game Result Alignments
  • Defined as: aligning the portfolio funding goals with its “end game result,” to ensure the realization of its “end game result.”
  • Example: ensuring that the portfolio has $x death benefit in force, or $x cash value, at a specific point in order to (goal) provide $X guaranteed income to survivor for life, provide the liquidity to pay the estate tax, or to transfer the business (end game result)