Business Loan Failure to Survive – Case Studies

Individuals looking to close on SBA and other business loans know how slow and painful it can be waiting for full underwriting for life insurance to satisfy lender requirements.  For those individuals that don’t qualify for accelerated or simplified underwriting domestically, we have a solution.  Failure to Survive policies can be approved and put in place in as few as three business days.

Case Study #1

A 40-year-old real estate developer was required by a lender to secure $10 million of term insurance to indemnify an apartment building project. Although the client was in relatively good health, he was declined by traditional carriers due to an ongoing Suboxone prescription because of a previous opioid addiction. Petersen International was able to provide him with the $10 million death benefit, quickly satisfying the lender’s closing requirement.

Case Study #2

A 54-year-old business owner was seeking to secure $500,000 of insurance as collateral on an SBA loan. She was clinically diagnosed as bipolar and suffered from a lengthy history of major depressive disorder. Despite her conditions being stable under proper prescriptions of medication as well as medical supervision, she was unable to find a carrier willing to cover her. Petersen International was able to provide her with a $500,000 Failure to Survive policy that satisfied the SBA’s insurance requirement, and the loan commenced.

Case Study #3

A 49-year-old dentist was in the process of buying-out his business partner and was seeking a $1,250,000 business loan. The bank’s requirement of life insurance had not yet been satisfied, and the lender had set a short closing window. The dentist was in underwriting for traditional term insurance, but the carrier was seeking additional medical records during the underwriting process, and the insurance would not likely be approved for at least several weeks. Petersen International was able to provide the required $1,250,000 coverage after only three days of

underwriting. The loan properly closed and the client was able to cancel his Petersen policy once the traditional carrier approved the term policy.