A Great Trip


The Petersen International Insurance Underwriters Express continues picking up steam. It reached the end of 2004 with a record setting performance. The make-ready for an even greater trip through the business year of 2005 has been done. Along the way Producers will pick up new products, new sales stimulation and performance.

Six new or dynamically remodeled products will be rolled out the first quarter of 2005 and put on track for record setting sales. In this issue we introduce the first new offering; a new model of a portfolio stalwart.

The Physicians and Surgeons High Limit Disability Plan

New > Full Own Occ. Definition on Medical Specialties
New > Own Occ Definition On the Optional Lump Sum Benefit
New > Higher Issue Limits – Up to $20,000,000 per Insured, or more
• Monthly Benefits up to $100,000 or more
• Lump Sum Benefit, up to $10,000,000 or more
New > Lower Rates – Rates reduced 40% on most specialties and none were increased.

Is there a Waiting Market? Yes! Are Medical Incomes Up? Yes!

Here are two examples currently in underwriting. This information partially slipped out before our programmed release date. They are representative of the pent up demand for increased coverage among Physicians.

1- Surgeon Age 50
• Monthly Benefits $83,333 X 60 months = $5,000,000
• Lump Sum following 60th month          = $5,000,000
Total $10,000.000
2- Surgeon Age 43
• Monthly Benefits $62,500 x 60 months = $3,750,000
• Lump Sum following 60th month          = $3,000,000

These figures may seem unusual, but they result from insuring 65% of an income of $1,500,000 in the case of the 50-year-old surgeon and 65% of an income of $1,150,000 in the case of the 43-year-old surgeon.

Physicians & Surgeons High Limit Disability Insurance

The Physicians and Surgeons High Limit Disability plan is designed with the flexibility and capacity to supplement existing individual or group disability plans for personal and business uses.

Monthly disability benefits with limits as high As $100,000 per month
Lump sum Benefits with limits as high as $10,000,000

Often times the glitz and glamour of these large limits overshadows the fact that the small and modest size cases are of equal importance. The vast majority of cases we handle are supplements for Physicians or Surgeons who have $10,000 to $20,000 already in force from traditional sources and need another $3,000, 5,000 or $10,000 per month.

Specialty Own Occupation is no longer an option, because it is built into the base plan.
No more worrisome concerns of whether to include this option or not.

All this with a rate reduction to boot!

A recent discussion with two seasoned Non-Can distributors confirmed the inadequacy of the non-can limits currently available to the medical profession. P/S HLD has been the best supplemental coverage available to physicians and surgeons and with the new features it is substantially increased that stature.

Consider the 50-year-old surgeon who may retire at age 65. If his practice and inflation boosts his annual income 5% per year he stands to earn $32,367,900. After paying out 40% in taxes he stands to have a net asset value of earned income of $19,420,740. The $10,000,000 of supplemental disability income is a reasonable amount for him.

Even 1/3 of his income gives a good case example. $500,000 with a 5% growth factor for 15 years is 10,789,300 and a net earned income asset value of $6,473,580. His Individual Non-Can plan providing $10,000 per month for 15 years = $1,800,000. Hardly sufficient to protect his $6,473,580 potential.

Doctors work with sick people. They know one can become disabled quickly and remain so for prolonged periods. They are believers in carrying adequate amounts of disability insurance. They buy goodly amounts of Disability Income Insurance if they can get it. PIU produced the solution with P/S HLD.