It happens all too often so we might as well divulge the antidote to one of the most common problems with business life insurance. What happens when the bank mandates, your partnership, or the board of directors of your company tell you that you need life insurance to protect the liquidity of your company, and your personal health or maybe your lifestyle or hobbies make that task much easier said than done? Unfortunately the life insurance industry is loaded with life insurance agents that want your business so they can cash the commission check, but they lack the experience and expertise to get the job done, sometimes at all, sometimes without breaking the bank (your bottom line). We’ll assume for the purposes of this post that you’re not running your business under the model of “money is no object”.
We have 20 or so of the best life insurance companies for impaired risk situations, which includes health, hobbies and lifestyle. This reflects about 1% of the companies that are allowed to sell life insurance in the US and almost 100% of the life insurance companies that you want on your side personal or business reasons. We got a call from an agent the other day who follows our blog and he asked why we were harping on business life insurance so much. Our answer is that business life insurance policies tend to be on older, over age 50 or age 60, people who generally are needing larger amounts of insurance, $1 million to $300 million and up and these are people who stand to lose the most if their life insurance needs aren’t handled properly. We confess that the the age of the clients and the size of the policies don’t hurt our bottom line, but if we don’t get it done and get it done right, well, let’s just say that botching the life insurance for the CEO of a large company is a quick way out of the business. As business people we tend to share our experiences and with social media added to circles of influence, the word and the damage or the word of the success both spread quickly.
So let’s put some real numbers to kind of drive home two things, 1. The need to shop cases before choosing a company and 2. The need to have the right companies in our portfolio for virtually any situation. We’ve been working with a client in the medical profession for a few years now. He had miss stepped several years ago and became addicted to pain medication, had a dui and was ordered by the board of his hospital to go through treatment. He complied 110% and three years out from treatment we were able to get him approved with one company for the $4 million in life insurance he needed as a partner in the medical group. That was two years ago. One company out of the 20 best companies was willing to accept the risk. We are now approaching 5 years out from treatment and are able to improve on his current situation, but depending on which of the 20 companies we asked we got prices all the way from $22,000 a year in premium to $52,000 in premium to declined.
If we didn’t constantly seek out and test new companies and work diligently to provide our core companies with business that they want on their books, we wouldn’t be in a position for our client to replace his current policy and save over $5000 a year. He took all the right steps in kicking his habit and protecting his position in the medical community by going through peer reviewed treatment and he has been rewarded by using agents that know how to get what our clients need and continue to improve on it until they aren’t paying a penalty for what happened in the past.
And we’ve also got a company in our arsenal that will do the impossible, or seemingly impossible. Since the time since an event is a critical component of traditional life insurance underwriting and until you reach that time you may not be able to get traditional life insurance, we have access to business life insurance through Lloyds of London who can put the insurance needed in force, even when it would be declined by our top 20, and buy our business clients the time they need to distance themselves from their health or life style issue. We can put these in force when all other life insurance avenues have crumbled and have it in force within a week. If you have questions please call or email. We can help
There are no comments on this entry.
There are no trackbacks on this entry.