Capital For Life | Life Insurance Solutions for Your Business

Life Insurance Solutions for your clients

Capital for Life|www.capitalforlife.com

TABLE OF CONTENTSSECTION 1 – WHO IS CAPITAL FOR LIFE?

Who is Capital For Life?......................................................................3

New Opportunities.............................................................................4

10 Uses of Life Insurance …...............................................................5-6

Working with Us.................................................................................7

Client Engagement Steps....................................................................8

SECTION 2 – OUR PRODUCTS & SERVICES

Our Life Insurance Solutions...............................................................10

Universal Life Features and Client Type…...............11

Universal Life Comparison Table …........................12

Premium Finance Options and Benefits ….............13

Whole Of Life Features and Client Type ….............14

Whole Of Life Comparison Table …........................15

Term Insurance Features and Client Type …..........16

Term Insurance Comparison Table ….....................17

Offshore Bonds Features and Client Type …..........18

SECTION 3 – CASE STUDIES

1. CASE STUDY 1: UK Property.........................................20-21

2. CASE STUDY 2: Family Security....................................22-23

3. CASE STUDY 3: Estate Equalisation..............................24-25

SECTION 4 – OUR TRAINING & RESOURCES

Our Training and Education Service........................................27

Our Resources...................................…...............…..................28

SECTION 5 – ABOUT US

The Team...................................…...............…...............….......30-31

Our Global Locations..................................…...............…........32


WHO IS CAPITAL FOR LIFE?

Capital for Life helps companies grow their bottom line revenue by delivering life insurance solutions to their clients. We provide businesses with a total end to end solution and provide financial advice, risk and compliance, consultancy and training for staff and ongoing reviews for your clients of life insurance products.

We manage the entire process for you and your client so you can better serve your clients and generate new revenue streams.

AdviceUK and

Offshore

ComplianceUK and

Offshore

Expertiseand

Track Record

GlobalCoverage 50+

Countries

Revenue Sharing

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Client

Trusted

Adviser

Develop

Differentiate

Generate

The world of private clients is changing quickly, and there are challenges.

But as a trusted wealth adviser, there are also opportunities. Capital for Life offers life insurance services to…

Develop your clients

Differentiate your service

Generate revenue


CAPITAL FOR LIFE PROVIDES NEW OPPORTUNITIES

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10 USES OF LIFE INSURANCE SOLUTIONS

1. Family Security - a life insurance policy cash pay out can be used to replace the family’s lost future income.

2. Estate Tax Settlement - proceeds from an insurance policy can be used to pay worldwide wealth taxes which become due upon the death of the life insured.

3. Credit Protection - loans may be recalled upon the death of the insured life. Cash from a life insurance policy can prevent a fire sale of assets being made to repay debts.

4. Key Man Protection - can provide cash to safeguard a business if a key individual passes away. The payout may be used to secure the services of a suitably qualified individual.

5. Partnership Agreements - cash from an insurance policy can buy a deceased partner’s shares in a business.

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10 USES OF LIFE INSURANCE SOLUTIONS

6. Asset and Currency Diversification - is provided by a financially strong insurer which always prices in hard currencies.

7. Beneficiary Equalisation - a flexible division of assets to beneficiaries can be made from an insurance policy cash pay out.

8. Sovereign and Political Risk Planning - an offshore asset pool that is protected during times of political uncertainty.

9. Philanthropy - A client’s charitable giving goals can be achieved with the death benefits from an insurance policy.

10. Tax Planning - many insurance solutions have considerable tax planning advantages, which can often be combined with Trust solutions.

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WORKING WITH US

You

Your Client

Life Insurance Solutions

Our Team are specialists in life insurance solutions, credit financing and global structuring solutions. Over $500m of life insurance cover placed and over $1billion of credit structured.

Our Expertise provides your clients with a range of life insurance solutions both onshore in the UK and across offshore markets.

New Revenues streams for your business from life insurance solutions we provide to your clients.

Client Service to review your clients policies remain appropriate and on track for their needs.

Global Reach means we can deliver life insurance solutions to your clients in over 50 countries worldwide.

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1

2

4

3

Introductory meeting / call with your client to understand their needs.

Discuss potential solutions

Paperwork completed and medicals arranged (where appropriate), liaising with underwriters, financing arranged (if appropriate) and the best outcome

achieved for your client.

We provide advice and recommendations to your client on the most appropriate solution to solve their

need(s)

We provide ongoing service and reviews to ensure the solutions remains optimal

for your client. We offer training, education and client service to you.


CLIENT ENGAGEMENT STEPS

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Our Products & Services


OUR LIFE INSURANCE SOLUTIONS

3a. OffshoreInsurance

Bonds

1a. Universal Life

Insurance

1b. Premium Financing

Investment Portfolio

Backed Cash Lending

2a. UK& Offshore

Whole of Life

1. Universal Life Insurance

3. Offshore Insurance Bonds & Wrappers

2. Whole of Life & Term Insurance

2b. Term Solutions

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1a. UNIVERSAL LIFE FEATURES AND CLIENT TYPE

What is Universal Life insurance?o Whole of Life insurance policy with underlying investment portfolio providing a cash in valueo Guaranteed Investment returns built into the underlying portfolioo Financing available against the policy because of its cash value and securityo High Death Cover of typically $5m to $150m +o Choice of insurance carriers and cover level

Who is it for?o HNW clients looking for high life insurance cover to protect their families and business interestso Global Coverage with over 50 countries availableo Biggest market is China, very popular in Asiao Fast growing markets in Middle East and Latin America, Africa and Central Eastern Europe

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UNIVERSAL LIFE COMPARISON TABLE

Benefits

• Very High Value cover available for HNW/ UHNW clients.

• Guaranteed Investment performance built into the underlying portfolio

• Investment Choice for clients• Guaranteed Investment Returns – inbuilt

minimum 2% annual return• Premium Financing / Lending can be done

against the policy because of its cash value• Cash Surrender Value available to client

Drawbacks

• More Expensive initial premium than Whole of Life insurance

• Limited Cover of $5m in some countries• Rising Interest Rates could occur on the

Premium Finance over life of policy loan

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1b. PREMIUM FINANCE OPTIONS AND BENEFITSThree Premium Payment Options

1. Single Premium - client can invest all cash.2. Deposit and Finance - client can make a down payment and borrow up to 90% of the single

premium – known as ‘premium finance’.3. Multi-Pay - client can pay for the policy in installments over a number of years.

Four Reasons Why Clients Choose Premium Finance

4. Flexibility - allows a client to purchase a high level of cover that may be unaffordable if premium financing was not available.

5. Leveraged Investment Returns - borrowing costs typically lower than investment returns made by the policy.

6. Retained Capital - by borrowing up to 90% of the premium, the client can invest the funds not put into the policy elsewhere with the potential to achieve greater returns than the cost of the premium finance.

7. Low Interest Rates – make it attractive to premium finance policies.

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2a. WHOLE OF LIFE FEATURES AND CLIENT TYPE

What is a Whole of Life Policy?o Whole of Life insurance policy with guaranteed pay out upon deatho No Surrender Value because no underlying investment portfolioo Level Premiums paid monthly / yearly for rest of lifeo High Death Cover of between $500,000 and $50m+o Onshore and Offshore choice of insurance carriers depending upon geography

Who is it for?o HNW clients looking for high life insurance cover to protect their families and business interestso Low Risk Clients who are looking for a guaranteed solutiono Coverage available in a more limited number of countries than Universal Life insuranceo Popular in UK and available as joint life, second death.

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WHOLE OF LIFE COMPARISON TABLE

Benefits

• Cheaper initial cost to purchase than equivalent Universal Life policy

• Guaranteed Payout as long as premiums continue to be made

• No Investment Performance to manage• Level Premiums give a client peace of

mind about the lifetime cost of cover

Drawbacks

• More Expensive than Term Insurance• No Cash Surrender Value meaning no

investment return• Ongoing Premium Payments must be

made for the rest of the insured’s life

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2b. TERM INSURANCE FEATURES AND CLIENT TYPE

What is a Term Insurance Life Policy?o Basic Life Insurance for a fixed period of time, typically 5 to 25 yearso Guaranteed Death Benefit pay out if premiums are maintained for lifeo No Investment performance built into the underlying portfolioo No Surrender Value to the policyo Level Premiums paid monthly / yearly for rest of lifeo High Death Cover of between $500,000 and $50m +o Onshore and Offshore choice of insurance carriers

Who is it for?o Mass Affluent to HNW clients looking to cover a known liability for a set period of timeo Coverage available in many countries, similar to Whole of Life availabilityo Popular in UK and Europe

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TERM INSURANCE COMPARISON TABLE

Benefits

• Guaranteed Pay Out as long as premiums are maintained for the life of the policy

• Cost Effective when insuring a known liability for a fixed term

Drawbacks

• Limited Period Cover• Risk of No Cover if policy ends and

cover is still needed• Increased Premium if a new policy is

required after first policy term ends.• No Surrender Value because no

underlying investments.• No Payout if client lives beyond the

fixed term of the cover

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3. OFFSHORE BONDS FEATURES AND CLIENT TYPE

What is an Offshore Insurance Bond?o An Offshore Bond is a combination of life insurance policy and an investment portfolio wrappero Single Premium and Top-Up Investments availableo Investors can hold a variety of assets including funds, cash, ETFs and structured notes.o Issued by insurance companies from offshore jurisdictions e.g. Ireland, Isle of Man and

Luxembourg

Who is it for?o Mass Affluent to HNW clients looking for tax efficient investment wrappero The Bond also offers privacy, protection and can be used to provide high death.o UK Resident and Non Domicile client benefitso Trusteeso Asset Managers

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Case Studies1. UK Property2. Family Security3. Estate Equalisation


CASE STUDY 1 UK PROPERTY

Client Scenarioo Successful businessman in China recently bought a property in Kensington, London worth GBP

15m giving him a current inheritance tax liability of GBP 6m.o After discussing his needs with his Trustees, he asks them to purchase a Universal Life insurance

policy on his behalf.

Planning Requirementso Client believes value of London property will increase over the next 10 years+ and looking for a

higher death benefit than current UK inheritance tax liabilityo Client wanted to cover the inheritance tax liability with the minimum up front payment

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CASE STUDY 1 UK PROPERTY (cont.)

Solutiono Universal Life insurance policy taken out by client for GBP 10m of life insurance cover, with a

premium of GBP 2.5m.o Premium Finance arranged for client of GBP 2.1m with client paying deposit of GBP 400,000.o An offshore SPV and offshore Trust for client is set up to hold and own policy.

Outcomeo Met client’s desire to ‘over-insure’ his potential tax liability now in order to provide for future

growth in his London property value.o Clients wish to minimise his outlay for the policy was taken care of by arranging premium financing.o The Wealth Manager introduced the client to a non-controversial solution to cover a potential UK

tax liability that would be problematic for his family if he passed away.

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CASE STUDY 2 FAMILY SECURITY

Client Scenarioo Client is the main breadwinner of the family who live in Dubai. He owns several businesses but

his family would not be in a position to run them if he passed away.

Planning Requirementso He wants to provide a guaranteed pool of cash liquidity for his family outside of Dubai.o There are $2.4m of loans outstanding against his businesses.o Client wants to premium finance his policy to maintain maximum liquidity in his businesseso Whilst he may maintain the policy for the rest of his life, he likes the investment features of the

policy and the flexibility it offers of providing a future cash value that he can access.

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CASE STUDY 2 FAMILY SECURITY (cont.)

Solutiono Universal Life insurance policy taken out by client for USD 24m of life insurance cover, with a

premium of USD 8m.o Premium Finance arranged of USD 6.7m with client paying deposit of just USD 1.3m to give

himself USD 24m of cover.o An offshore company and offshore trust are set up for client to hold and own the policy.Outcomeo Met client’s desire to provide a large pool of cash liquidity offshore from Dubai to provide

liquidity for the family to live on whilst they sold the businesses.o The policy would also pay off his business loans which would become repayable.o An equity index linked Universal Life solution could be used to provide the client with a strong

investment element to the policy in case he cashed it in.23


CASE STUDY 3 ESTATE EQUALISATION

Client Scenarioo Client has 3 sons and 2 daughters. Two sons are helping run the family business and one

daughter is married.o He is 68 years old and concerned about the distribution of his estate after his passing.

Planning Requirementso He already has assets worth USD 37m in a combination of real estate across several countries,

private equity investment and an operating business in Singapore. He has no debts.o Client wishes to take a conservative approach with his investment into a life insurance policy

given the risks he is taking elsewhere.o Given his age, he is attracted to the Multi-Pay option of funding his policy.

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CASE STUDY 3 ESTATE EQUALISATION (cont.)

Solutiono Universal Life insurance policy taken out for USD 20m of life cover, with a premium of USD 13m.o Multi-Pay option agreed with insurance company over a 15 year term.o An offshore company was set up for the client’s existing offshore Trust to hold and own the policy.

Outcomeo Met client’s concerns over the uneven distribution of his estate by allowing son’s to inherit the

operating business and private equity arrangements. The properties and cash could then be left to his daughters creating an equitable solution.

o An insurer managed fund for the Universal Life solution was used given the clients conservative risk nature with this part of his wealth planning.

o Given his age, the multi-pay option was selected by the client because no further installments are payable to the insurer if the client passes away before all payments have been made.

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Our Training and Resources


OUR TRAINING AND EDUCATION SERVICEExpertise is what makes the Capital for Life team different. With over $500m of life insurance cover placed we have the expertise and track record to help you and your team deliver new solutions.

Our Clients - Trust Companies, Private Banks, Family Offices, Asset Managers and High Net Worth Individuals who require the highest standards of training, professionalism and compliance.

Our Commitment - We offer our clients in house training days, educational seminars, online access and resources to ensure your team is confident in understanding our solutions.

Full Service - Our role is to help you broaden, deepen and widen your relationships with your clients using life insurance solutions, whilst taking on the advice, risk, compliance and execution for you.

Now and for the Future - Ongoing training to your staff to make sure they are up to date and service to your clients to review their policies to ensure they remain on track to deliver their needs.

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OUR RESOURCES

The Trustee Guide to using Life Insurance | Capital for Life – Our download guide gives Trustees an overview of the different type of insurance policy available and includes our 10 Uses of Life Insurance Solutions.

Life Insurance Review Fact Find | Capital for Life – Trustees have a fiduciary duty to their clients to maintain and review their life insurance policies. This download resource helps you capture the key information and we will review the policy for you.

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Our Global Locations


OUR GLOBAL LOCATIONSCapital for Life DubaiOffice 430, Building BSahaa OfficesSouk Al BaharDubai, United Arab Emirates

Capital for Life GuernseyHeritage Hall,Le Marchant Street,St Peter Port, GY1 4HYGuernsey

Capital for Life Bermuda3rd Floor, Belvedere Building69 Pitts Bay Road, PembrokeHM 08, Bermuda Capital for Life London34 New House67-68 Hatton GardenLondon EC1N 8JYUnited Kingdom

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Documents

Capital For Life | Life Insurance Solutions for Your Business