An Advisors' Guide to Excess & Surplus Disability Insurance

5 Scenarios When to Use the Excess Lines Market for Death Protection

Posted Wed, Apr, 13th, 2022
By Exceptional Risk Advisors

For life insurance advisors, there is no substitute for great advance planning.  Traditional life insurance provides comprehensive accident and sickness coverage and is often more cost effective to obtain.  However, what do you do when an urgent key person life insurance request lands on your desk on Monday and is required for a deal to close on Friday?  Or your number one client decides to climb one of the seven summits and you can't obtain sufficient amounts of life insurance from traditional carriers?

Through the powerful resources of the Excess Lines Market, there are two products available for advisors: 1) Accidental Death & Dismemberment (AD&D) and 2) Contractual Performance Indemnity (CPI).  AD&D is coverage used as an alternative, supplement, or short-term solution for individuals who cannot obtain sufficient amounts of traditional life insurance.  Benefit amounts exceed $100 Million per person, 24-hour worldwide coverage, and policy terms ranging from 1 day to 3 years.  CPI is coverage that is readily available for contractual situations which present an urgent need to cover death or disability risks.  Benefit amounts up to $25 Million per person, 24-hour worldwide coverage, and streamlined underwriting with 24-hour cycle time.

To help illustrate when and how to use these products, below are five scenarios:

  1. Urgent Life Insurance Request: To fulfill contractual obligation within a merger and acquisition or employment contract.
  2. Participates in Risky Activities: Coverage for hazardous avocations such as scuba diving, mountain climbing, race-car driving, helicopter piloting, etc...
  3. Travels to Countries with Travel Advisories: Travel for business, pleasure, or humanitarian efforts.
  4. Short Notice Life Insurance for Bank Loan
  5. Short Notice Life Insurance for Contractual Obligation

Related Article: How to Protect Your Base-Jumping, Crocodile-Wrestling, Shark-Diving, Volcano-Luging, Snake-Wrangling CEO

At Exceptional Risk Advisors, our goal is to compliment and supplement the traditional market with additional limits and products, and never to compete with it.  AD&D and CPI solutions are only used when the traditional markets can not or will not fulfill.  Add these tools to your arsenal and be ready for those last minute and unique opportunities from your clients and referral sources.

Looking to learn more about these two products?  We're hosting a webinar, "How Sophisticated Life Insurance Advisors Place Challenging Life Opportunities", on April 26th.  Sign up here!