Product Selection is a subset of Case Design, in which Member Firms evaluate various product alternatives to determine the most competitive products and planning strategies that meet the client’s needs.
Once a Member Firm has established the client’s objectives, the product design and selection process can begin. This involves reviewing client data such as age, tobacco use, known health issues, heredity, avocations, and travel, as all can have a direct impact on the final recommendation. Member Firms review existing coverage and previous underwriting offers, if available. This helps the Member Firm compile a complete client profile.
A client’s tolerance for risk is an important consideration. Factors considered include market risk, interest rate risk, carrier financial strength, etc. For example, some clients may prefer guarantees (and consequently, lower growth) rather than products with more risk but lower guarantees.
Considering the client’s tolerance for complexity, Member Firms may recommend designs such as split dollar, private financing, Grantor Retained Annuity Trusts (GRATs), Family Limited Partnerships (FLPs), Intentionally Defective Grantor Irrevocable Trusts (IDGITs), Charitable Lead Trusts (CLTs), Charitable Remainder Trusts (CRTs), or other sophisticated designs.
Product Analysis and Summary of Recommendations
Once the appropriate course of action is determined, Member Firms complete an analysis of suitable products. An executive summary, with the overarching planning and economic implications, may be included in the recommendation presented to the client and their advisors.
With access to proprietary products, designed and priced using M Financial’s superior experience (mortality, persistency, expense), Member Firms can create solutions others cannot. This broad range of products, available exclusively through M Member Firms, often gives Member Firm clients a meaningful advantage.