The State of the Company
Increases in business is the result of planning, timely execution and above all, exemplary service. In 2006 Producers responded to our efforts by delivering a 16% increase in business over the record breaking results of 2005.
Our mutual business progress with Producers has over the years enabled the company to invest in building up our portfolio of products and underwriting innovations which has resulted in Producers’ ability to exploit new and expanded markets and to achieve remarkable profits for themselves.
An example of this fact is that last year over 100 Producers did or could have qualified for The Million Dollar Round Table exclusively on Petersen International Underwriters premiums.
The good results of business year 2006 will enable Petersen International to continue to invest in the Industry. We have perennially invested in many of the industry support organizations, especially The American College and The International DI Society. Such investments are like indirect dividends to Producers.
The Insurance Industry has shown its intention to provide increased support and dedication to Disability Insurance. This is apparent from the increase in advertising, increased articles being published, support of educational efforts and competitiveness in the industry.
Petersen International Underwriters established its roots in the disability insurance industry, February 19, 1948, fifty-nine years ago. In September we will mark 25 years as a Lloyd’s Coverholder.
Ye Olde 401K Completion Plan
Some prominent disability carriers have recently introduced a plan which will make the scheduled deposits to a 401K. The deposits are made to a trust. The only use of the funds is to make the specific deposit. This is new for those carriers.
In over 25 years of Underwriting service, we have always included deposits to a retirement account to be included in the issue amounts of disability insurance. This benefit is not paid to a trust, but to the Insured who retains discretion over the use of the benefit amount. That is how our Olde Retirement Completion Provision works.
Now we introduce another product called the 401K Disability Completion Plan. At a very modest cost, this plan will make the remaining deposits from now to age 65 in a single lump sum if the disability is deemed to be permanent.
A person becomes disabled at age 45, not to be able to perform the duties of his or her occupation, the DI Completion Plan will yield a lump sum of 20 years deposits (age 45 to age 65) to fully fund their retirement plan. This benefit is paid to the insured and not into a trust. This allows the insured to decide the proper use of the funds.
Olde Fashion Waiver of Premium –
Now New on High Limit Disability
Waiver of Premium has been recognized by the Life Insurance Industry as a product of design intended to benefit the Insured by making premium payments during long periods of disability.
The purpose of Waiver of Premium is misleading. If the Insurer offered Waiver of Premium as a benefit to the Insured, why would the Insurer not offer Waiver of Premium on other aspects of the Insured’s expense demands? Aspects such as Waiver of Premium on car insurance, on medical insurance, on groceries and mortgage payments.
Could it be the Insured sees Waiver of Premium as a benefit to itself to prevent the lapsation of the life policy?
Property/Casualty Insurance policies do not contain a Waiver of Premium because these are single term plans. There is no renewal premium. Continuation of such Property/Casualty Insurance requires the issuance of a new policy. Waiver of Premium is not applicable to such plans.
Our High Limit Disability Series comes from insurers which have a 400 year footing in the Property/Casualty Business. In a previous Communicator, we shared with you about our success in getting renewal type policies from Lloyds. A continuing effort has resulted in an agreement to include, at no added cost, Waiver of Premium on certain High Limit Disability Policies. Certain new policies will automatically have a built in Waiver of Premium Provision.
*CUSTOMER SERVICE OPPORTUNITY*
At the anniversary dates of existing policies, we will endorse the Waiver of Premium on High Limit Disability Policies. This feature does not apply to Medical, Kidnap & Ransom, Athletes or Special Plans.