When the dot.com industry hit the world we suddenly had CEO’s and Presidents of companies who were young, healthy and like the rest of us at that age, immortal. With immortality comes a seemingly valid reason for a CEO to not buy life insurance, or even entertain the thought that it might be important at some point. But even then the average CEO or company executive wasn’t 30 years old and in spite of executive health plans might not qualify for the best life insurance rate class available. Even more realistic is that company owner’s, CEO’s, CFO’s, COO’s and the like and nothing more than a cross section of those of us who make a lot less money and they have health, mental health and life style issues that make it difficult to acquire the life insurance they know they need or they know they are required to have by a bank or board of directors.
Picking an agent and company for your business life insurance needs should be a simple thing, but even when you are one of those 30 year old, completely healthy CEO’s, you are at the mercy of a life insurance agent pool that simply sees you as a way to satisfy their fascination with dollar signs. Just like there are ill trained and dishonorable people in almost any industry, life insurance is no exception harboring its’ own conglomeration of agents who will sell you the wrong product instead of the correct one. They will place your business with a company that doesn’t meet your needs just because they are ignorant to the life insurance needs in business, and sell you too much or too little, again due to ignorance.
The problem is these same agents can mess a $12 a month sale and turn it into an $18 a month sale, 50% higher. And when they run across someone like the President of a company that I’m helping with life insurance, rather than his key person life insurance costing $16,000 a year, it would be $24,000 a year if the ill trained or dishonorable agent didn’t get the case declined. It’s just too important in business life insurance to get it right because when it’s done right it works the way it should and it doesn’t blow the bottom line. I’m working with the CEO of a company right now who got his butt handed to him by a life insurance agent who is probably still laughing. He pay’s $120.000 a year for $15 million in life insurance and after gathering all of the information it looks like we should be able to get him a longer guarantee for 1/3 the cost, $40,000. The wrong agent. The wrong company. The wrong product.
Bottom line. If you have been tasked with getting executive life insurance for officers or the big guy in your company, don’t just throw it out there and assume that even agents you’ve used before will do the right thing. Compare. Treat it like a business transaction. If you are a CEO and have been declined for any reason, know that there are some agents in the country, obviously including myself that can get the job done and plug that hole in the dike. Call or email me directly. My name is Ed Hinerman. Let’s talk.