M Financial Group
M Financial Group is a national consortium of more than 145 upper echelon independent firms. The organization was founded in 1978 on the belief that insurance for affluent individuals and families, and their closely-held companies, should be approached through a unique lens and offered on an exclusive basis. The founders were four young life insurance professionals with immense passion and a statistical hypothesis that life insurance for affluent buyers warranted pricing and performance advantages for two reasons.
First, once they purchased insurance, affluent buyers were more likely to pay their annual premiums and keep their insurance long-term. Secondly, they could afford top quality, proactive healthcare which contributed to living healthier and thus longer lives. M Financial Group’s founders believed that if these factors were supported by actuarial proof, it would demonstrate the reduced risk for the insurance companies, thereby reducing pricing for affluent buyers.
Today, the proof sought by M Financial Group’s founders is embedded in our business model. As such, it supports affluent buyers via six key pillars.
Proprietary statistics lead to proprietary products
Over 35 years, M Financial has amassed statistical proof that confirms our founders’ mortality and persistency hypotheses. With that proof in hand, major insurance companies have partnered with M Financial Group to design proprietary products uniquely priced for affluent buyers. The data has also allowed us to establish unusual credibility and negotiating clout with the insurance companies.
Competition for wallet-share
M Financial’s underwriting advocacy provides a platform to submit inquiries to multiple insurance companies simultaneously, on the buyer’s behalf. As such, our model incents insurance companies to compete for your business. Also, at Family Wealth Counseling, we believe that the nuances of various products are relevant to the nuances of your planning. The breadth of our vetting platform allows us to stress test a variety of products and companies against your planning goals.
Shared risk of reinsurance participation
Reinsurance is essentially insurance on an insurance policy. While many companies wash their hands of this risk by out-sourcing it, M Financial maintains a percentage of the reinsurance on its proprietary products. We reinvest the first dollars of reinsurance profit into technology and product design. And, we share in the risk alongside our insurance partners, motivating member firms to design quality policies that can stand the test of time.
Pricing adjustments demonstrate appreciation for your business
M financial believes that performance and cost should be measured over the life of the policy, not just at the point-of-purchase, and that buyers should be rewarded for owning well-performing policies. When policies perform better than anticipated, M Financial credits portions of that unanticipated savings back to the policy owner. Over several decades, M Financial has delivered nearly 60 repricings, and cost reductions of upwards of $200M.
Volume buyers get volume pricing
Because member firms are dedicated to working with affluent buyers, policies purchased by member firm clients are thirteen times larger than the industry average. This creates economies of scale for the insurance companies, which in turn lowers policy charges for M proprietary products.
Family Wealth Counseling’s approach to the M Financial model
While all M Financial firms have access to the same model, individual firms choose to apply the model in a variety of ways. Family Wealth Counseling enhances the solid product platform available through M Financial by aligning it with a solid planning platform.
We are emphatic that insurance is most effective when implemented inside of a planning wrapper. In some scenarios, we’re introduced by a fellow advisor who has already developed the planning. In other scenarios, we initiate the process and do the planning together with the client’s longstanding advisors.
Family Wealth Counseling is an affiliate of M Advisory Group, a Member Firm of M Financial Group.