An Advisors' Guide to Excess & Surplus Disability Insurance

A Guide to Accidental Death & Dismemberment Insurance

Posted Wed, Jun, 12th, 2019
By Exceptional Risk Advisors

Accidental death and dismemberment insurance is an easy to place program when your clients' accident risk is heightened and traditional markets cannot or will not accommodate.  Below is a short guide on when this type of insurance is used at the corporate or personal level. 

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.  The reality is that the magnified awareness around a business trip to a global hot spot or the exposure that is created when a company loads their most valuable talent aboard a single aircraft often results in an insurance need being developed or uncovered with little notice.  When these types of needs arise, the underwriting process migrates from the traditional life and disability insurance market to the playing field of high limit or specialized risk underwriters of a Lloyd's of London Coverholder.

To help illustrate, we recently worked with a large U.S. company who had acquired a factory in Mexico.  Eight business days before the CEO of the U.S. company was to visit the factory, the advisor was tasked with providing $50 million of key person life and disability insurance.  Due to the abbreviated time frame, traditional carriers were not an option. The advisor, armed with the CEO's travel itinerary and details on compensation and equity, had enough information to submit to our underwriting department and within 72 hours a policy was issued.

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At the personal level, when a high earning individual is about to embark on a safari or partakes in race car driving or piloting, often times the advisor can not access sufficient amounts of life insurance from traditional carriers or the avocation is excluded from the policy.  A Lloyd's of London Coverholder has the ability to "buy-back" these exclusions from the estate plan with a specialty product to provide comprehensive coverage.  

Here is a notable example: A 54 year old with a net worth exceeding one hundred million dollars began helicopter piloting during his traditional life underwriting.  Traditional carriers placed an aviation exclusion on the client's life insurance portfolio leaving his estate exposed to a death while piloting.  We bound $30 million of "in-flight only" coverage to supplement the traditional policy in place. 

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Through the resources found at the London market, accidental death and dismemberment is a 24-hour worldwide insurance solution with benefit amounts exceeding $100 million per person.  The policy terms can be as little as 1 day or up to 3 years.   

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