ANSWERS TO QUESTIONS ABOUT COHN FINANCIAL GROUP


IS COHN FINANCIAL GROUP A COMPANY I CAN TRUST?

You can put your complete confidence in Cohn Financial Group. We offer specialized unmatched product and acquisition expertise. For over 25 years, we have been the trusted partner of many high net worth individuals and businesses that have turned to us for our customized life insurance solutions. They rely on us to help them to retain, enjoy and transfer wealth without income tax erosion, obtain the best institutional pricing, manage the reinsurance process, monitor performance, and deliver professional, objective consulting solutions. Since 1990, we have been a member and shareholder of the elite M Financial Group, a global insurance buying syndicate with over $1 billion in annual revenue offering a series of lower priced, proprietary products for M member firms.

Plus, Cohn Financial Group is proud to be an Industry Fellow Member of The American College's Cary M. Maguire Center for Ethics in Financial Services. The purpose of this organization is to raise the level of ethical behavior in the financial services industry by offering programs that help its financial services members be more sensitive to ethical issues, think more critically about ethical solutions, and above all, conduct themselves with honor and dignity.

WHAT UNIQUE BENEFITS CAN I EXPECT FROM COHN FINANCIAL GROUP?

You can expect a wide range of customized client services. Investing in or acquiring large amounts of life insurance is different from other transactions, and Cohn Financial Group is uniquely qualified to guide you through the process, so you avoid pitfalls along the way. Most importantly, we provide timely information regarding policy charges, investment performance and how those impact policy values. Early warning detection can head off unanticipated results. To support this twenty-five percent of our staff is dedicated to servicing client policies by providing monthly, quarterly and annual reports to ensure that performance is tracking expectations.

With the belief that performance and cost should be measured over the life of an insurance product, not with an initial illustration or the first year premium, M Financial works closely with Carriers to monitor service, experience, and performance of in-force business to ensure that proprietary products continue to be effective. As a result of this dedicated level of oversight, pricing enhancements, supported by experience data, have historically been applied to both new sales and in-force business—providing a level of service to clients that is rare in the industry.

Tax and legal strategies are complex, as are funding decisions and cost structures. Even the process of coordinating medical and financial underwriting with multiple primary and reinsurance companies is a specialized activity requiring years of experience, all which we offer. Cohn Financial Group is one of a small number of firms in the U.S. with expertise in ultra-complex insurance cases, including private placement life insurance and annuities, as well as other proprietary life insurance products.

Our key staff has over 100 years of combined experience and a track record of success. We offer a wide range of proprietary products with lower cost structures that are specifically priced for high net worth clients and have the buying influence to help obtain the best possible underwriting decisions from multiple companies. Our expertise and intellectual capital coupled with access to proprietary products is designed to create results and our product and acquisition expertise is uncommon in the industry.

WHAT SORTS OF PRODUCTS DO YOU OFFER?

Since 2006, our primary focus has been offering customized private placement life insurance and annuities to qualified individuals and entities, in addition to a wide range of proprietary life insurance products to meet our clients' needs (including Universal Life, Indexed Universal Life and Variable Universal Life). These can be a powerful wealth building opportunity—especially when we assist in monitoring those products.

Plus, we pair these highly specialized products with institutional pricing, not retail, because sophisticated buyers and their advisors expect nothing less. For example, M mortality pricing, instead of retail life insurance pricing, can provide distinct advantages when assembling a large case. M Financial reinsures part of the risk through M Financial Re, so we work directly with insurance companies when pricing risk.

WHAT IS COHN FINANCIAL GROUP'S AFFILIATION WITH M FINANCIAL GROUP?

We are a member and shareholder of the elite M Financial Group, one of the nation’s premier financial services design and distribution companies, serving the ultra-affluent and corporate markets through an exclusive network of 140 of some of the nation's most successful and innovative financial services firms. M Financial, formed in 1978, is a global insurance buying syndicate with over $1 billion in annual revenue. Through M Financial Re, a wholly owned reinsurance company, member firms like Cohn Financial Group reinsure a portion of the risks of each policy. M Financial has over $33 billion in cash values and $120 billion face amount in-force (2012).

In 1996, M Financial’s improved mortality (better than industry experience) coupled with better-than-industry persistency and lapses (based on M Financial Re’s actuarial data) was incorporated into a series of lower priced, proprietary products for M member firms. Since then, M Financial has continued to innovate by co-manufacturing products with major U.S. life insurance companies.

WHAT KIND OF COMPANIES DO YOU WORK WITH?

We work with single and multi-family offices, their advisors, investment managers, and major life insurance companies to create and coordinate the complex funding, underwriting, pricing, and other components for private placement and other proprietary life insurance.

WHAT'S IMPORTANT TO YOU IN CLIENT RELATIONSHIPS?

We believe the most important factors in a successful client relationship are transparency, disclosure, collaboration, communication, and ethical behavior.

WHAT OTHER CORE COMPETANCIES AND EXPERTISE CAN I TAP INTO?

While we have expertise in the traditional uses of life insurance for estate tax funding, wealth transfer, managing the reinsurance process, and consulting on business succession planning, we have also developed core competencies in the following areas:

  • Law firms: solutions for partner’s unfunded (non-qualified) retirement obligations, including bankruptcy remote strategies
  • Family offices and private trust companies: improving investment return potential on tax-inefficient asset classes
  • Middle market companies: improving investment return potential on balance sheet assets to fund key executive retirement plans and/or stock redemption plans
  • Grantor trusts: income tax planning
  • Foreign citizens subject to estate tax on U.S. assets
  • Offshore to onshore via 1035 exchanges with illiquid or hard to value assets in offshore policies
  • Offshore transactions: choice of company, frozen cash value or private placement variable life insurance need while reducing cost and saving time
  • Coordinating advanced funding strategies often used in large cases to help you and your advisors decide the most effective strategy for funding large insurance premiums without incurring gift tax.
  • Managing the reinsurance process when underwriting very large cases. Cohn Financial Group has pioneered a process of bundling internal retention from multiple companies and then strategically allocating reinsurance acquisitions. Our innovative approach is designed to create better results to accommodate the large investment or large life insurance need, while reducing cost and saving time.

WHERE CAN I LOCATE ADDITIONAL RESOURCES TO HELP ME BETTER UNDERSTAND THESE PRODUCTS?

We have put resources at your fingertips. Cohn Financial Group provides recommended resources, including Mike Cohn's books on making the right choices about selling your business and orderly transitions for family businesses. Plus, we deliver links to his articles on domestic private life insurance and what trustees should know (and do).

Additionally, you may also want to acquire The Advisor's Guide to Life Insurance, which clearly explains complexities of life insurance, life insurance terms and how to determine the appropriate policy.

WHAT IF I HAVE OTHER QUESTIONS ABOUT COHN FINANCIAL GROUP, WANT TO KNOW MORE ABOUT YOUR PRODUCTS OR SERVICES, OR AM INTERESTED IN A CONSULTATION?

It's easy to talk to us and get answers you need or arrange for a consultation. Simply call our Phoenix, Arizona, office at 602.468.9667 or toll-free at 800.422.3883 or reach out to us through our contact form.