A Simplified-Issue Death Benefit
Over the last few decades, the Surplus Lines specialty market has been successful in developing some of the life and health insurance industry’s most brilliant and forward-thinking products for American businesses. Failure to Survive (FTS) insurance is one such incredible evolution that is recently proving to be an incredible tool for U.S. life agents and brokers.
The product goes by various monikers throughout the industry (FTS, CAP, CPI), but the basic Failure to Survive policy is similar in format to term insurance for third-party business applications. Its main purpose is to address buy/sell or business loan situations where there is a financial obligation to indemnify a contract upon the death of an individual. It is also commonly used to insure marquee employees or business owners with a straightforward key person benefit chassis. The product can be designed to also address the insurance requirements for divorce decrees and court orders.
The real magic of the FTS product is that it can be underwritten very quickly. The average turnaround time from receipt of application (short one-pager) to the binding of coverage can be as little as two to three business days. Underwriters offer simplified issuance of the coverage without cumbersome requirements like time-consuming and sometimes intimidating physical exams and lab work.
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 traditional term insurance underwriting is holding-up a business deal relying upon the financial indemnification of a corporate buy/sell agreement.
FTS underwriting is also more liberal than that of traditional term carriers, making FTS coverage the obvious solution for impaired risk cases and those that have been previously declined by the regular market for adverse medical histories or drug and alcohol issues.
Another evolution to the Petersen International FTS product line is that the program is now available to persons directly or indirectly working in the rapidly-expanding legal cannabis industry, no matter the business need.
Failure to Survive insurance is so flexible and adaptive with countless impactful uses in the market today. It 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. life/health market.
Call Petersen International Underwriters at (800)345-8816 to learn more about the nuances of our FTS product line.