Risk Spotlight – Real Life Case


A 61-year-old executive business owner was in the process of setting-up a proper financial succession plan with his younger business partners.  They had formed a legally binding buy/sell agreement to settle the purchase of corporate shares and payoff families in case one of the partners suddenly died or became permanently disabled.  Life insurance policies were acquired, but the insurance advisor struggled with the disability insurance requirement.  The need was $5,000,000 of coverage on each of the three partners.  She was able to place the risks of the two younger partners with a traditional DI carrier with ease, but the 61-year-old was declined by multiple sources simply because of age.

The advisor eventually found a carrier willing to consider taking on the risk of the older partner, but demanded a declining benefit amount as the client aged which was contradictory of the partners’ buy/sell agreement.  She then turned to Petersen International having heard about our flexible disability programs and our unique ability to readily insure clients over the age of 60.

We were able to underwrite and issue a permanent total disability insurance policy on the 61-year-old executive with a five-year, renewable policy term and a lump sum benefit of the required $5,000,000 after a 365-day elimination period.  Unlike other buy/sell disability programs, our lump sum benefit will not decline over time as the client nears the age of retirement.

Petersen International has the right financial solutions for your business clients of most any age.

Comment