A Death Benefit for Hard-To-Place Cases
Numerous agents and advisors reach out to Petersen International on a regular basis seeking solutions for impaired-risk life insurance that offers more substantial limits than typical guaranteed-issue and final expense policies. Fortunately, we have a growing portfolio of term insurance products that provide high-limit death benefits on impaired-risk cases.
The product line is called Failure to Survive. You may be wondering what it is, why you should care and how it can fit into your business. Failure to Survive (FTS) insurance is a brilliant and progressive series of products developed for use in the U.S. market. Its many attributes have drawn a growing following of independent agents and large brokerage outlets. It will prove to be very useful to your business clients and will save many of the cases you stand to lose for one reason or another.
The basic FTS product is similar in format to term insurance for third-party applications. Its main purpose is to address key person, buy/sell, contract guarantee or business loan situations where there is a financial obligation to indemnify a business contract upon the death of an individual (usually the business owner or a key employee) with insurance. It cannot be used as an alternative to personal-benefit life insurance but is commonly employed to cover divorce decrees and alimony or child support court orders.
Medically sub-standard cases find easy solutions among the FTS product line as the underwriting guidelines are more flexible than those of traditional carriers, allowing for medical exclusions and coverage for persons with infirmities like cardiac, body mass and diabetes issues. It’s also optimal for prospects with drug, alcohol and mental health concerns.
What makes the FTS product stand apart is that it can be underwritten quickly. The average turnaround time from receipt of application to the approval of coverage is usually several business days. Underwriters offer simplified issuance without requirements like intrusive medical exams, blood draws and urinalyses.
The short period of underwriting allows policy owners to meet the strict and time-sensitive deadlines mandated by lending institutions on loan agreements. An FTS policy can also be extremely useful when the underwriting of a traditional term product is holding up a business deal relying upon the insurance for a corporate buy/sell contract, buy-out or investment agreement.
Failure to Survive insurance has many impactful applications in the market and can help you save cases that you otherwise thought were dead in the water or at the very least faltering. Call Petersen International Underwriters at (800)345-8816 for an in-depth introduction to our Failure to Survive product line and its remarkable capabilities.