Benefits Realization Plan

Lighthouse Financial Services Company — How the Beacon Index Advantage business case will be measured after launch, who owns each measure, and the pre-committed thresholds at which the carrier acts. Status as at 16 October 2026, 507 days before the first policy is issued.

1. What This Plan Is For — and Why It Is Not a Value Claim

Most benefits realization plans exist to claim value: they enumerate savings, attach owners, and report progress toward a number the program promised. This one cannot do that, for three structural reasons that are worth stating plainly before any benefit is listed.

1. The benefit case can fail. The approved return is 13.4% against an 11.0% hurdle, but the disclosed downside is 10.1% — it does not clear. This is the only suite in the portfolio whose business case carries a scenario that fails, disclosed rather than closed.
2. The return cannot be observed for a decade. An internal rate of return on a fifteen-year cohort is not a measurement, it is a projection, until the block has substantially run off. Nobody will know the real answer while anyone involved still owns it.
3. There is no governance body left to receive the answer. Gate 5 convenes 07 September 2028, 185 days after launch. It can read a partial first year and nothing more. Then the Gate Review Board dissolves.

2. Benefits Realized to Date: Zero, and Correct

No benefit in this plan has been realized, and none could have been. The product does not exist in market until 06 March 2028; every measure below reads zero because there is nothing yet to read. Reporting $0 realized at the status date is the accurate position, not an underperformance. A benefits plan that showed early partial realization on an unlaunched product would be measuring something other than the product.

3. The Six Measured Benefits

They are ordered by when they become readable, not by size. That ordering is the whole design: a benefit that cannot be read until Month 15 cannot serve as an early warning, however important it is. BEN-01 and BEN-04 carry the early-warning load precisely because they are legible from the first month of sales.

4. Benefit Detail

5. Pre-Committed Trigger Thresholds

The business-case model establishes that fixed run cost is the only element that does not scale with sales volume. Product margin and required capital both scale, so a proportional shortfall would leave the return untouched; it is operating leverage alone that converts lower volume into a lower return. That result has a useful consequence: sales volume against plan is a sufficient early indicator of the return, and it is readable from the first month.

The thresholds below are computed from the model, not chosen:

Committed responses

The amber band deliberately triggers before the 23% breakeven rather than at it. A threshold set at the point of failure is not a warning — it is a post-mortem with better timing.

6. The Tolerance Already Consumed

The plan tolerates a 23% volume shortfall. Written commitments from the three largest IMO partners, obtained under GC-04, total $168,000,000 against a Year 1 target of $185,000,000 — -9.2% against plan before a single policy is sold.

40% of the available volume tolerance is consumed at the status date.

7. The Governance Cliff After Gate 5

Gate 5 convenes 07 September 2028 and reviews the post-launch window to 01 Sep 2028. It is the last event in the program's governance, and it can read BEN-01, BEN-04 and BEN-05 on partial data, BEN-02 on a first partial read, and neither BEN-03 nor BEN-06 at all.

8. Handover to the Operating Line

Because governance ends before measurement does, benefit ownership must transfer to a body that outlives the program. Gate 5's formal outputs include that transfer, and this plan specifies it.

The transfer is a handover of measurement obligations, not of the benefits themselves. The product line already owns the P&L; what it does not automatically inherit is the obligation to report actuals against what Gate 1 was told, which is a different and easily-dropped discipline.

9. Measurement Gaps

Stated openly, on the same principle the Gate Conditions Register applies to conditions: a plan that lists only what it can do is not a plan.

10. Document Control & Related Documents

Related documents: Cost-Benefit Analysis §5–7 · Gate 1 Business Case Package · Gate Conditions Register (GC-04 efficacy finding) · RAIDD Log (I-06, R-07) · Stage-Gate Governance Model (Gate 5 mandate).

Maintained by C. Tyrrell, NPD Program Manager and Chair of the Gate Review Board, until the Gate 5 handover at §8.