Primary Concept Name: Behavior Tax™ What is Behavior Tax™? Behavior Tax™ is the cumulative opportunity cost experienced by life insurance policyholders when suboptimal behaviors are chosen—whether intentional or not—regarding premium payments, timing of optional premium contributions (PUAs), loan management, or policy monitoring. "It’s the tax you are paying and you didn’t even know it! Your family doesn’t get, nor does the government it’s gone forever all — for behaviors that leave growth potential on the table." How Does It Work? Payment Timing Impact: o Monthly premium payments include higher administrative loads for insurers. o Annual premium payments receive discounts that enhance compounding. Optional Paid-Up Additions Timing: o Contributing PUAs early in the policy year maximizes the time value of money. o Earlier contributions allow dividends to compound sooner, increasing long-term values. • Life Insurance Companies Validated: o This effect has been observed in Canadian contracts with Equitable Life of Canada, Manulife, and Canada Life participating whole life products. o The actual magnitude of savings and growth varies by company contract design, pricing models, and administration fee structures. Policy Loan Behavior: o Loan repayment schedules and interest management play a major role in compounding capital access. • Compounding Over Time: o These small behavioral variations compound powerfully across 20, 30, or 50 years, often representing hundreds of thousands of dollars in additional financial energy available to the family banking system. Coined and first demonstrated publicly by Richard Canfield during a group client coaching session on August 17, 2024.