Failure to Survive – The Solution for Unique Cases
Failure to Survive insurance is a unique solution that protects the financial investment of a key person or persons in the event of death. The financial exposure of corporations and investors can be a massive in the event of an unexpected death of a key person.
Most firms are familiar with the financial exposure associated with a key person which is often offset with life insurance but sometimes life insurance cannot be obtained. Take the following case study for example, the two owners of a marijuana dispensary needed key person protection to fulfill an investors requirements but they had difficulty finding insurance protection.
Case Study: An investment firm needed $6 million of key person insurance split between the two owners of a state-approved marijuana dispensary. The insurance coverage was the only outstanding requirement before they could finalize the investment.
The owners were in great health and considered preferred risks but all the traditional carriers were declining their applications. Because of the federal legal concerns with the cannabis industry, the insurance companies automatically declined the applications.
Unable to place the coverage the insurance producer turned to Petersen International Underwriters for help. Within a few days, the Failure to Survive applications were approved and coverage was issued. The multi-year term policies covered each partner for $3 million, which fulfilled the final requirement for the investment agreement.
With policy limits of up to $50 million available (and higher limits available upon request), Failure to Survive is a great solution for unique and hard to place cases.