Pillar Five

DCIm is a structured, asset‑based lending approach: the investor funds a business‑purpose loan and simultaneously owns a permanent life‑insurance policy on the borrower’s key person. Ownership starts on day one, not by assignment later, so the policy remains in force under the investor’s control.

How it runs, in sequence:
1) Issue the loan (e.g., $50,000 to an operating company).
2) At the same time, purchase a permanent policy on the key person with a face amount sized to the debt—commonly up to 6–7× the loan. Premiums are paid once, often under $0.30 per $1 of coverage.
3) Document creditor’s insurable interest, obtain written borrower consent, and size coverage proportionally to avoid anti‑wagering issues.
4) During the term: if the borrower performs, the investor receives contractual interest and still retains the policy (which can accrue cash value and dividends). If the borrower defaults, the investor continues to own the policy and, upon the insured’s death, receives the benefit, which is generally designed to exceed the unpaid balance.
5) Exit uses vary—estate liquidity, inter‑generational transfer, or philanthropy.

Illustration (not advice): a $50,000 loan paired with a $300,000 policy funded at roughly 23% (~$69,000) implies an initial outlay near $119,000, with dual outcomes modeled over time.

Note: DCIm relies on the creditor’s insurable‑interest doctrine with explicit consent and is not a security or pooled vehicle.

For investors prioritizing stability, a disciplined screen helps compare options beyond cash, JGBs, and blue-chip equities.

Use this five-point risk filter:
- Capital at risk: Define the worst-case loss under a reasonable 12–24 month stress. If downside cannot be bounded or explained, pause.
- Cash flow reliability: Identify the source of return (e.g., fixed coupon, dividends). List the triggers that could interrupt payments and the recourse if they do.
- Liquidity and control: Clarify minimum holding periods, exit windows, any gates/penalties, and who controls redemption mechanics.
- Currency and rate sensitivity: Specify JPY exposure, any hedging approach and costs, and how interest-rate duration may affect principal.
- Governance and costs: Confirm legal structure, custody/segregation of assets, audit or third-party oversight, and all-in fees.

Practical rule: If two or more answers are unclear, request documentation and discuss with your private banker before proceeding. This preserves downside first while maintaining optionality for incremental return.

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What DCIm looks like in practice, step by step:

1) NDA executed: You gain access to the full framework—step-by-step process design, legal templates, role-based flowcharts, and strategy mechanics—built to keep the model compliant, repeatable, and insulated from legal missteps.

2) License Agreement: Grants full deployment rights, templates, and support. This isn’t a passive educational package; it’s the legal right to use a defined system.

3) Private Deployment Begins: You retain full autonomy and control while applying the structure as designed.

Why carrier details are restricted: The strategy enables compliant acquisition of high-face-value insurance contracts at a fraction of cost through a legal structuring pathway not available via retail channels. Contracts are issued by A-rated providers, and carrier names, policy classes, and issuance mechanics are shared post-NDA.

Bottom line: This is not a program—it’s a deployable system.