No Exam, No Labs Term Insurance


In this changed world of social distancing and government mandated stay-at-home orders, the long shadow of the Coronavirus has definitely taken a toll on American businesses and financial sectors.  The life insurance industry has yet to be hit hard, but experts are seeing a general slowing trend among financial services businesses including most lines of insurance.  The need and desire for proper life insurance is more relevant than ever, but the underwriting requirements and policy issuance logistics have turned many prospective clients away.

Consumers are afraid of becoming a COVID-19 statistic and are readily balking at the prospect of buying life insurance due to the anticipation of the usual lengthy and intrusive underwriting methodologies of most life insurance carriers.  The idea of having to undergo a paramedical examination or having an unknown examiner enter their home is too much for many customers to entertain.  Clients that need life insurance are foregoing the purchase of coverage or postponing their decisions at this time.  There is a great desire and need for a “no contact” term insurance underwriting process.

Luckily, Petersen International has just the solution.  Failure to Survive (FTS) insurance is a simplified-issue term product that provides a death benefit 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 magic of the FTS product is that it can be underwritten very quickly without any exams or lab requirements.  The average turnaround time from receipt of application to the binding of coverage can be as little as three to five 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 because your clients don’t want to be examined.  FTS coverage is a 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 and how your life clients can gain the insurance they need at this time without exams or labs.

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