In business we don’t always have the luxury of waiting to buy business life insurance when it’s a better value or more convenient. When the bank says now… When the court judge says now… When a large financial agreement is waiting for life insurance to bind it and traditional life insurance companies won’t offer you coverage for some reason, the answer is shift gears and go another direction.
The need for life insurance doesn’t always come at a convenient time and things that affect our insurability have the same bad habit. What if you had a chance to sell your business for an amazing profit and the deal required that you stay involved for a few years and be covered by life insurance? Would you put the deal off because a health issue made traditional life insurance absurdly overpriced or see what’s behind door number two?
If you were about to close on a major business loan that required life insurance as collateral and were diagnosed on your insurance exam with a health issue that would render you uninsurable for a year or two, would you just postpone the business project or see what other avenues were open for life insurance?
If a bank required that you have life insurance as collateral in force for a home construction loan and everything was set to start, what would you do if no insurance company would approve the policy? You’ve got a contract to build the house and you know waiting 2 or 3 years is going to be a disaster, knowing that there is a door number two could be just what moves things forward.
If you’re going to be one of the lucky first tourists on Richard Branson’s version of Battlestar Galactica, and you’re thinking a little extra insurance might be a good idea, don’t look to Prudential or Met Life.
What if you are court ordered to provide $50 or $100 million in life insurance for a divorce settlement and no traditional companies will touch you because you are recovering from open heart surgery? No sympathy from the spouse or the court can be expected. I’ve seen several cases where the decree for court ordered insurance was let go because the person was able to show the judge a string of declined applications. It’s time to throw open door number two and find out what Lloyds of London can do. And if the proposed insured doesn’t want to open that door, maybe the estranged spouse will help them.
The amazing thing I’ve found is that, especially in cases where traditional life insurance companies assess a large flat extra due to, for instance, a recent fight with cancer, Lloyds can be an affordable option. One case that I worked on just recently would have cost $21,000 per $1 million of life insurance through the best of the traditional offers. After 5 years the price will drop because $15,000 of that is a $15 flat extra per thousand per year for five years. Lloyds is covering that risk for a little of $8000 a year.
And that’s a case that is insurable. Lloyds will step up to the plate when clients are completely uninsurable and won’t be able to get traditional coverage for some time. Keep in mind that the insurance need can’t be personal. It has to be contractual. Business or court ordered insurance qualify. Of course with Branson’s plane trip to the edge Lloyds would be looking at accidental death insurance.
Bottom line. Lloyds has been the preeminent business life insurance risk company in the world for nearly 300 years. If you think your insurance dilemma is too complicated or too large, call or email me directly and let’s get the facts for you.