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Prospects:

  • Existing clients
  • Banker referrals
  • CPA referrals
  • Builders
  • Real Estate Firms (Commercial)
  • Leasing Company referrals
  • Medical Equipment Manufacturers
  • Aircraft & Yacht Sales
  • Venture Capitalists

Loan Indemnification Disability Insurance

Often times, when a bank lends money to a business, they will require the borrowers to provide disability insurance covering the payments. This is ensures the bank that, should the borrower become sick or hurt, the payments will still be made. The preferred solution would be to prescribe disability insurance that would pay the monthly loan payments and/or pay off the remainder of the loan balance.

A Gateway To New Markets

Banks, credit institutions and leasing companies are logical candidates to provide or recommend Loan/Lease Disability Insurance to benefit their clients. The logic for such firms to concern themselves about the need for Loan/Lease Disability Insurance comes from the very statistics supplied by the loan industry.

  • The Federal Home Loan Bank reports that over its many years it has determined the major cause of mortgage loan foreclosures is disablement of the mortgagee: 48% vs 3% due to death.
  • It is not uncommon for the lending firm to require life insurance as a condition to make the loan. Such insurance covers the consequences created by death (3%) and leaves abandoned the greatest hazard to loan default, disability (48%).
  • 67% of people who suffer heart attacks, the number one killer in America, survive. Cancer survival has reached the plateau of 56%. The greatest number of disability cases involve people age 30-49 years of age, with the average age being 41. Consider the published observation of Selena Maranjian, who writes in The Motley Fool, "Most of us need disability insurance, yet less than 15% have it!"
  • Bankers are becoming increasingly aware of the hazards to their loan repayment potential. Roughly 25% of all bankruptcies are tied to an illness or injury.

Most often Business Overhead Expense insurance plan benefit periods are too short to satisfy the loan. Additionally, while it may be advantageous for the bank, asking an individual to assign his or her personal disability benefits to the bank would leave the insured's family seriously vulnerable financially.

PIU’s Loan Indemnification Disability Insurance Plan will satisfy the bank requirements. Monthly benefit periods from 1 year to 10 years are available and there are also lump sum benefit options. The plan would be set up to mirror the loan terms with a declining benefit, this type of set up will save your clients in premium costs. Keep your clients secure with Loan Indemnification Disability Insurance.

Optional Riders of Loan Indemnification:

  • Residual Disability Rider more information
  • Flexible Interest Rate Rider more information

Residual Disability Benefits will be paid when you are engaged in your occupation and your income is reduced due to a disability by 15% or more. The benefit will be calculated by multiplying the monthly benefit by the percentage of reduced income compared to the average income for the preceding twelve months at the time of disability. If your income loss is greater than 80% this will be considered a 100% loss.

Flexible Interest Rate Rider provides for the Temporary Total Disability Monthly Benefit to be adjusted to the lesser of the monthly loan payment or one hundred and twenty percent (120%) of the stated Maximum TTD – Monthly Benefit as the loan payments indemnified by this certificate are adjusted by the lender based upon the terms and conditions of the original loan agreed to by underwriters.