A Great Alternative for Business-Owned Term Insurance
I would like to introduce you to Failure to Survive insurance. 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 forward-thinking series of products developed in the London market for use in the U.S. life/health industry. Its many uses and applications have drawn an immense following of American insurance brokers as of late, and it will prove to be very useful to your business. FTS coverage can save many of the cases you stand to lose for one reason or another.
The insurance goes by various monikers throughout the market, but 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 or business loan situations where there is a financial obligation to insure a business contract upon the death of an individual (usually the business owner or a key employee). It is also commonly employed to indemnify divorce decrees, surrogacy agreements and alimony/child support court orders. In some cases, a policy can be issued on a “confidential” basis without requirement of the knowledge of the insured person.
The real magic of the FTS product is that it can be underwritten quickly. The average turnaround time from receipt of application (a short single page) to the binding of coverage is usually no more than a couple of business days. Underwriters offer simplified issuance of the coverage without requirements like intrusive physical exams and blood draws.
The quick underwriting period 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 indemnification of a corporate buy/sell or investment agreement.
Additionally, medically sub-standard cases find 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 or alcohol concerns.
Failure to Survive insurance has many impactful applications in the market today, and can help you save cases that you otherwise thought were dead in the water or at the very least faltering. FTS coverage is another great everyday solution for the pervasive complications encountered in the U.S. market.
Call Petersen International Underwriters at (800)345-8816 for a more in-depth introduction to Failure to Survive insurance and its remarkable capabilities.