If life and life insurance was all simple there wouldn’t be any bumps in the road. We would all have the coverage we need when we need it and Dorothy would be singing Somewhere Over The Rainbow in the background. Truth is that most of the time with life insurance it is that way. People plan, follow through with the plan and all is well in Kansas.
Except for the occasional curve ball. The board of directors decides that you, as CEO, founder, brilliant mind and everything important behind a successful company should have a large key man life insurance policy in place. Without it their goose is cooked if something happens to you. So, at the monthly board meeting they let you know they need you to move ahead on acquisition of that policy….now. It’s a priority. What they don’t see is that the DUI you had a few months back is going to be a problem, an exercise in which their priority loses to the life insurance underwriters guidelines on drinking and driving.
This client is realistically looking at 1-2 years before we can get traditional life insurance on him, but Lloyds came through with a curveball bandaid on this case. They will be providing a policy to cover his responsibility to the company from now until he qualifies for a less expensive policy down the road. Just like another case I placed not long ago, it was a matter of needing the insurance and needing it now in a situation where no traditional company will touch it….yet.
I shared in a previous post about a physician who was building a clinic. The bank required a life insurance policy as collateral and when he went to apply for the policy he was diagnosed with prostate cancer when his PSA was unexpectedly high on the insurance exam. He needed the policy to close on the loan and because he had just been diagnosed with cancer he still had to go through treatment and a post treatment waiting period before we could get any offer at all from traditional companies. Again Lloyds came through with a policy that was affordable and he could carry for the year or two until he was in more favorable graces with traditional underwriting.
I am working with a client whose ex husband is court ordered to carry $20 million+ in life insurance as part of the divorce settlement. He had applied with several companies but was declined for life insurance for the same reasons his marriage didn’t work out. He drinks far too much. The one way out of court ordered life insurance has always been if you cannot get approved, but in this case his ex wife turned to Lloyds of London and we should soon have the insurance in place. He isn’t real wild about the price, but truthfully he wasn’t real wild about the fact that a solution was found and the price, really, isn’t that bad for someone who is court ordered to carry more than $20 million in life insurance.
It may sound like I run off to Lloyds at every turn, but note that none of these people could get insurance through a traditional company. These people had a curveball thrown at them and they didn’t have a choice but to deal with it.
Bottom line. For an agency that specializes in helping those who have been declined or beat up for no good reason by life insurance underwriting, we’re very good at finding traditional companies to overcome most of our challenges. But there are times when that ball leaves the pitcher’s hand that you know you have to pull out the stops and hit it. If you have any questions or have a business situation that requires high limit business life insurance or court ordered life insurance, call or email me directly. Let’s talk.