Life Insurance for the Uninsurable

I don’t think many people grow up saying, “I really want to be in the insurance business when I grow up.”

It also might be hard for most to understand how somebody can get excited about life insurance.  I may be one of the few, but I was absolutely pumped this week because I was able to get an uninsurable person the coverage that he really needs.

Here’s the story.

An employee benefits client has a manager with a rare health condition that has prevented him from getting life insurance.  We have group life at the company, but he has a young family, and he’s been trying to figure out a way to get more coverage, preferably coverage that’s portable.

The company has 10 managers that have worked there for a long time.  I asked them if they’d be open to looking at an executive life insurance program for the management team, and they agreed.  We found a company willing to offer $25,000 of guaranteed issue permanent life insurance for each of the managers on an employer-paid basis (higher limits are available for bigger companies).  But it gets better.

Each of the managers is able to supplement the $25,000 with additional coverage up to $250,000 at their own expense if they’re able to answer “no” to a couple of health questions.  In addition, another $250,000 is available to them each year at plan anniversary.

We’re in the midst of the enrollment now, but many of the managers are taking advantage of the extra life insurance and taking out policies on their dependents as well.  The guy that was previously uninsurable is now able to get as much life insurance as he feels he needs over the next several years.  It’s an absolute home run.  I actually did a little jig when he was able to answer both health questions with a “no.”

This type of program can fit well in a number of different situations.  This example is an executive benefit, but it can also be used to reward long term employees at any level or as a completely voluntary benefit.

In the end, this was the perfect solution for both the manager and the employer.

If you’d like to talk about executive benefits, we’d love to hear from you.  Give us a call at (866) 724-0008 or click the link below.


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