An Advisors' Guide to Excess & Surplus Disability Insurance

How Advisors Access Elite Clients Through the Excess DI Markets

Posted Wed, Nov, 20th, 2019
By Exceptional Risk Advisors

If you attended our webinar last week titled, "How Advisors Access Elite Clients Through the Excess DI Markets", you would have heard our Founder and CEO, Ted Tafaro and VP of Business Development and Marketing, Sean McNiff discuss the characteristics of a successful advisor in the Excess DI space.  The common thread we heard throughout the webinar was the advisor's ability to constantly think of all of their client's insurance needs and come up with creative solutions.  

The three types of advisors who find success in the Excess DI markets are 1) advanced life insurance advisors, 2) disability insurance specialists and 3) executive benefits specialists.

When an advanced life insurance producer sees themselves as a disability insurance producer - they have struck gold.  They consistently think of how they can solve for their clients problems, find unique solutions that differentiate their business and bake it into their process.  For example, we recently worked with an advisor on a $10 million key person disability policy for the Chairman and CEO of 30 assisted living properties.  The advisor already placed key person life insurance through a domestic carrier and was looking for a solution for the key person disability piece.  The key person disability policy that was procured would replace lost revenue and aid in the recruitment of top real estate developers and property management firms for the running of the facilities and the continued growth of the organization in the event the CEO could not return due to a critical illness or injury that left him disabled.

Case Study: Key Person Disability Placement of Equity Funded Start-Up

A disability insurance specialist who has hit the roof in terms of limits in the domestic market, will typically turn to the Excess DI markets for additional coverage.  During the webinar, it was stated that many disability insurance producers do not know that there are other options outside the domestic disability market.  The successful DI specialists we see and work with have exhausted the domestic market and will turn to the Excess DI markets like Lloyd's of London.  To help illustrate, if you have a 50-year-old client earning $1 million annually who plans to work for another 15 years, your client has over a $15 million exposure to their estate in the event he or she were to suffer a serious illness.  Ask your client: What do you own that is worth $15,000,000 that is not properly insured?

An executive benefits specialist who has discovered the possible third layer of coverage through the Excess DI market and is able to close the income replacement gap for the highly compensated, set themselves apart from the competition.  During the webinar, Ted and Sean spoke how organizations use this benefit as a recruitment and employee retention tool.  The successful executive benefits specialist has a basic education of the Excess Multi-Life GSI product and a trusted partner to help guide them.  Here are our top 5 frequently asked questions we receive regarding our GSI product. 

If you missed the webinar, you can watch the recording here (jump to 2:37 for the start).  That concludes our webinar series for 2019.  Stay tuned for our 2020 webinar series, where we'll take a deeper dive into some topics, discuss new case studies, host guest speakers and quiz you on some trivia topics (insurance and non-insurance related)!