CGP Products

 

Through one or more of its subsidiary companies, Capital Growth Planning, Inc., ("CGP") offers the following financial products, programs, and structures:

 

Life Insurance “Backed” Collateral (“LIBACSM”)

The LIBACSM business process (Patent Pending – U.S. Serial No. 12/322,259) has significant investment banking and capital formation applications. Life Insurance “Backed” Collateral is a life insurance contract based product that offers a “Fully-Funded” primary or secondary collateral instrument to nearly any type of investment transaction, where investment principal must be protected from loss. Structures have been designed for Direct Purchase, Unit Offerings, Private Investment in Public Equity (“PIPE”), Unit Investment Trusts, Debt Structures, Endowments, and Fund Structures. Brochures regarding several of these structures are available for download below. Several additional Products not listed are currently in the design stage. If additional due diligence information on this product is requested, including a legal opinion letter, issued by Locke Lord Bissell and Liddell, please contact the Company and additional information will be sent after the execution of an appropriate Non-disclosure Agreement.
 

The following LIBACSM brochures are available:
  

LIBACSM - Insured Equity Structure(s)

LIBACSM - Insured Debt Structure(s)

LIBACSM - Insured PIPE Structure(s)

LIBACSM - Insured Fund (Unit Investment Trust) Structure(s)

 

Life Insurance “Contract Backed” Securities (“LICBS”) 

LICBS products are built from the LIBACSM business process, offering a new high “yield” monetized life insurance based (structured life settlement) financial program with numerous investment product applications that may be directed to and utilized in the institutional and/or banking markets. LICBS is a new life insurance based product (asset) that delivers a fully funded “Paid” current yield, well above current market rates on financial products with similarly “rated” risk.  The “Yield” (income) and “Principal” (return of investment) on this product is “Backed” by contracts (held in Trusts) issued by U.S. Life Insurance Carriers having at least a Standard & Poor’s rating (at issuance) of “A” or better, depending on the product’s rating requirements. CGP is exclusively offering to qualified financial institutions this new yield product in an investment partnership program that may provide financial institutions increased yield leverage to attract or retain customers by providing a higher yielding “Insured” Cash Management, Money Market, and/or Certificates of Deposit products. Other investment and product benefits of Life Insurance “Contract-Backed” Securities are as follows:

  • LICBS Assets may provide a current annual Yield (income) of no less than 6.00%, paid on a quarterly basis. . .
  • Taxable equivalent Yields of 8.50% to 9.00% for 10 years or more (based on composite age/gender of the Insured’s). . .
  • Targeted Yields may be used to service products of lower yields, providing institutions increased profit and/or deposit(s) leverage. . .
  • LICBS Assets offers above average market Yields, when compared to other similar S&P Rated investment structures. . .
  • Average maturities of LICBS Assets are 15 years (replacement assets may be structured for early maturities). . . 


The following LICBS brochures are available:
  

LICBS - General Brochure

LICBS - Product Brochure

 


Principal Protected FUND Products

By way of the Company’s LIBACSM business process, CGP intends to use this structure to either offer through a Fund family partnership, or alternatively, build its own series of FUND structures, to be offered through CGP wealth management offices in coordination with its planned bank affiliate. This new series of planned Fund products will be managed by CGP’s subsidiary, Insured Capital Management, Inc.

 

Financial Institution & Banking Products

In addition to planned Fund products (using the LIBACSM business process), CGP will also use the investment benefits of its LICBS product to build a series of above market Yield products (i.e. Cash Management, Money Market, and CD’s) to also be offered through CGP wealth management offices in coordination with its planned bank affiliate. Additionally, CGP has built several Premium Finance structures that will also be offered through CGP wealth management offices in coordination with its planned bank affiliate. For more information on Premium Finance products, see below.

 

Premium Finance Life Insurance Products


Traditional “Permanent” Premium Finance Life Insurance: This premium financed product is currently being offered under its “Wealth Creation” brand through Capital Growth Insurance Services, Inc. and is most suitable for higher net worth individuals ($2 million or higher) applicable for trust owned, corporate owned, bank owned, key man, estate transfer and/or other appropriate life insurance needs. The Product is designed primarily for insured’s, ages 40 to 70, interested in acquiring permanent life insurance using innovative bank financed structures. Management is currently working on additional product structures and its own bank lending structure. Additional products in the design phase will become available to Private and Public Companies, Foundation’s, Endowment’s, Professional Groups, and Charitable Remainder Trust’s (also known as CRITs and CRATs).


Senior “Originated” Premium Finance: This premium financed product is designed primarily for individuals over the age of 70 and is currently being offered under its “Asset Creation” brand.  These insurance company pre-approved bank financed products assist seniors in creating a new asset for their financial benefit that goes beyond standard life insurance coverage.  These programs are very appealing to seniors seeking to secure life insurance coverage for estate tax, gifting, or new asset creation. Programs may be designed to deliver a desired net death benefit by reverse engineering the required coverage and relative costs. 

 

Estate Protection Plus: This Product when completed will have two structures, in which both will require the use of a mortgage loan, Single Premium Immediate Annuity (“SPIA”), and premium finance loan combination or a reverse mortgage - premium finance product design. These Products will be for home owners, age 62 and older, who are interested in using idle home equity and/or other real estate assets, to assist them in securing a host of tangible “life long” income, financial and estate benefits, including, but not limited to: 1) monthly income that will never be outlived; 2) estate/asset protection; 3) partial, or full estate replacement through a fully funded life insurance program; and, 4) estate creation proceeds (income and estate tax free, when correctly designed) for designated beneficiaries (heirs). Each of these benefits may be achieved while continuing to maintain legal ownership of one’s residence (or other real estate assets used) for his/her lifetime. One product will actually allow the home owner to receive benefits for life with no corresponding mortgage payments, ever!  These products provide a host of benefits to the sponsoring bank and require the services of several licensed professionals. CGP, through several of its licensed companies, has completed several of these programs, but has decided to put these programs on hold until it acquires or forms a bank or bank affiliate.

 

Life Insured Certificate of Deposit: This product structure, which will eventually become a bank licensed product, is in the final stage of development, but still requires financial modeling and confirmation from bank executives. This product will be designed and marketed to attract higher net worth depositors, providing competitive Certificate of Deposit (“CD”) rates (FDIC Insured) with the CD customer receiving the added benefit of life insurance coverage in the amount equal to at least the their CD deposit. The Insurance will be fully paid, for the life of the insured, as long as the insured/CD holder maintains their CD with the bank.  The Life Insured CD Product will require the customer to establish a deposit account of $500,000 or more, and will only be available to higher net worth, insurable clients. This Product is only possible by virtue of another product that is also proprietary to CGP.

 

Controlled Gifting Plus: This product was originally designed to be used as a non-profit, partnership gifting program, which, when completed, will require approval on a state-by-state basis. Original programs required senior (insurable) members to be age 70 and older, and have at least a gross net worth of $2.5 million to be “qualified.”  The program was to be a “fully-funded” life insurance premium finance program that delivered between a 5% to 10% net death benefit to the insured’s designated non-profit, upon the death of the insured. This market has seen significant legislative changes that generally now require a state mandate and legal opinion letters. The market for non-profit gifting is significant and with the right legal team, this program may be highly beneficial to non-profit groups (as well as the donor) and have the potential to generate significant revenue opportunities for the donee. This program is also on hold pending the formation of a bank affiliate.