An Advisors' Guide to Excess & Surplus Disability Insurance

3 Situations Where Sophisticated Advisors Utilized the Excess Lines Market

Written by Exceptional Risk Advisors | Feb 8, 2023 1:45:00 PM

With January behind us and the new year not so shiny and new, it can be easy to slip into old habits.  Stand up, walk down the hall, and shake it off.  There are 11 months to crush your goals this year.  We are here to share three situations where we have seen sophisticated advisors utilize the Excess & Surplus Lines Market to satisfy the needs of their exceptional clients.  And we guarantee that one of these situations will ring true for your practice - we believe that everyone has that one exceptional client.  Did they receive a big salary bump or bonus last year?  Did the value of their business increase ten-fold?  Are they in the middle of a major acquisition and about to embark on that African Safari trip of a life time?  Read the below and then check in with these folks.

Situation 1: A gap in a highly compensated client's income protection plan.

The unexpected loss of income can crush a highly compensated client's otherwise perfectly sound financial plan.  High-income-soon-to-be-high-net-worth-clients need a specialized approach to protecting their future income.  High Limit Disability through the Excess Lines Market provides additional income protection when group and individual disability coverage in the domestic marketplace is already at maximum limits.  Target audience: C-suite executives, hedge fund managers, private equity & funded portfolios company key executives, and law firm partners.

Download Three Client Situations One-Pager

Situation 2: A business client with a valuation over $5 million

Many business owners have the bulk of their wealth tied up in their businesses. Protecting that equity from the impact of a disability to themselves or to one of their partners becomes a clear focal point as the value of their business rises.  Buy-Sell High Limit Disability through Excess Lines Market preserves the financial security of a business and provides funds for the transfer of ownership in the event of an owner’s disability.  Target audience: business owners, and partners in a firm with an established buy-out requirement.

Download Buy-Sell Case Study of Commodities Firm

Situation 3: An urgent request for life insurance

When a client is required to obtain life insurance to close a deal, but the application is still in underwriting.  Contractional Performance Indemnity (CPI) through Excess Lines Market is readily available for contractual situations which present an urgent need to cover death or disability risks.  Target audience: key executives within mergers & acquisitions, business owners with an immediate need for life insurance to protect a loan obligation.

In January, we held a webinar discussing the above three situations along with stories from the field.  If you missed it, you can watch the recording here

If you are interested in learning more about how to utilize the Excess Lines Market for your clients, please schedule a meeting with our business development team.