401 W. Colonial Drive, Suite 802
Orlando, FL 32804-6830 (Map)
407-648-1470 (Phone)
407-648-1196 (Fax)
Proprietary Products
"Our clients - wealthy individuals and corporate executives - live longer, buy larger policies and keep them longer, so they deserve a better deal." - A Founding Partner of M Financial Group
M Financial Group was founded on the principle that “off-the-shelf” products often do not meet the needs of ultra-affluent and corporate clients. Since 1978, M Financial has worked closely with the nation’s most prestigious insurance carriers and investment firms to develop innovative products with unique features and flexible options that complement the needs and objectives of Member Firm clients.
Proprietary products are a natural fit for M Financial. Together, we apply the best practice in the industry, have a strong entrepreneurial spirit, and consistently distinguish ourselves from the competition. We are creative and innovative, and are always looking for better ways to help our clients achieve their goals. In addition, there are a number of factors driving M Financial’s success with proprietary products, including:
- Relationships
The strong, long-term relationships we maintain with clients, and the deep partnerships M Financial has with a select group of Carriers, allows us to deliver product and service differentiation to Member Firms. - Favorable Experience
With a credible experience pool that clearly reflects the extraordinary mortality, persistency, premium volume, and high average face amounts of ultra-affluent clients, M Financial is in the unique position to work with a select group of Carriers to develop proprietary products priced for our clients. - Inforce Management
M Financial continuously monitors the service, experience, and performance of inforce business to ensure that proprietary products continue to be effective. Historically, pricing enhancements resulting from experience data have been applied to both new sales and inforce business, a principle that is unparalleled in the industry.
M Financial's collective buying power and superior mortality, persistency and policy size experience result in exclusive pricing for Member Firm clients. As a result of M Financial's significant scale, success, and volume, Member Firm clients can access M-priced proprietary product from five of the nation's most recognized and respected life insurance brands.
M Financial's Mortality Experience
Affluent clients have lifestyles and health care access that generally translate to lower mortality. The mortality experience of Member Firm clients is approximately one-half of the industry aggregate.
M Financial's Lapse Experience
Low policy lapse rates (the percentage of policies that are surrendered or lapsed for nonpayment of premium each year) mean the insurer has a larger base over which to recover sales and marketing costs. This can translate to lower unit expense factors and help sustain good long-term performance. Low lapse rates generally result from satisfied clients, whose policies have met their expectations. The annual policy lapse rate for Member Firm clients is approximately 28% of the industry average.
M Financial's Average Policy Face Amount
Larger policies can mean lower unit expenses because the fixed per-policy costs of underwriting, issue, and administration can be spread over more units. M Financial's average policy size is approximately $940,000 compared to an average for the 100 largest U.S. life companies of $233,000.
Proprietary products continue to be an essential part of M Financial's success. In 2006 alone, 40% of life sales were in proprietary insurance product offerings. With cumulative first year premium exceeding $3 billion, proprietary products have helped M Financial's total sales grow at a compound annual growth rate of 17% since 1996.
M Financial Group continuously monitors the service, experience, and performance of inforce business to ensure that proprietary products continue to be effective. In addition, pricing enhancements resulting from experience data apply to both new sales and inforce business.