Show Me The Max
When you ask for a disability insurance proposal, do you usually request a “Maximum Benefit” based on income and other coverage in force? We like to ask, “Are you really getting the maximum?” If the client is earning more than $150,000 annually, nine times out of ten the answer will be “no”.
When you request a maximum income replacement disability proposal it will normally involve the use of two different carriers. The first carrier would be a traditional carrier which refers to an issue and participation chart to determine the maximum benefit available. This chart involves reverse discrimination in that the more a person earns the less the percentage of that income the carrier will insure. So, when incomes reach the $150,000 – $200,000 range the chances are a second, non-traditional carrier will be needed in order to illustrate at least 65% of income replacement coverage to the client.
Petersen International Underwriters will participate in indemnifying up to 65% – 75% of income, regardless of the amount of income a person makes. A person that earns $1,000,000 can and should be insured up to $54,000 – $62,000 per month. So the next time you say to the person running the proposals, “Show Me The Max”, be sure to request the additional proposal for supplemental coverage through PIU.