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When a large, national Accounting Firm is
going through the final steps in a merger agreement with a smaller
competitor, the risk management department raises the concern that Key
Person Life Insurance has yet to be secured; with the acquired firm’s
President contractually bound to stay on for two years, ensuring a
successful merger, the agreement is in jeopardy of costly delay, unless a
short-term, interim solution can be found.
Fortunately, within 48 hours of receipt of
an application, IDU is able to issue a 90 Day Policy Term for Contractual Protection Insurance which would payout a benefit for Death Any
Cause should an unfortunate loss of the President occur while the
traditional life insurance is being underwritten.
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An Independent Entertainment Company is
financing a new film for which they need to secure a loan, however the
lending agency is requiring disability protection on the guarantor for the
full 5 years of the term.
IDU provides Loan Indemnity Insurance which will payout a monthly benefit that
covers both the monthly repayment amount as well as interest charged. Since
the benefit period and total aggregate reduces over the term of the policy,
premiums will also shrink, mirroring the ongoing payment of the loan.
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A mid-sized Pharmaceutical Company with
three equal owners is addressing business continuation shortfalls by
securing Buy Sell
Disability Coverage.
They’ve successfully taken out domestic policies on 2 out of the 3
owners for coverage totaling $2,000,000 of their $5,000,000 total business
value. The third owner is above age limits for domestic options, leaving a
$11,000,000 combined exposure for the Company.
With age and benefit limits far exceeding
traditional carriers, IDU issues excess disability policies to match the
domestic carrier payout structures with an initial Lump Sum followed by
monthly installments over 60 months that complete the remaining buy out
obligation.
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