Rock Stars exist in all industries. Caught up in all the glitz and glamour of the Lloyd's of London market place, it's easy for advisors to overlook how Lloyd's can protect their best clients - from executives managing billions of dollars of assets, to partners executing powerful buy-sell agreements, to highly-compensated individuals whose livelihoods require unique income protection resources.
For clients earning in excess of $1M, protecting their income takes a specialized approach. To illustrate such an exposure, take a 50-year-old executive earning seven figures annually with a time horizon of 15 years until retirement. This executive has over a $15 million exposure to their estate in the event he or she were to suffer an injury, or more likely, a serious illness*. What do your clients possess that is worth $15 million and is not fully insured? Most likely, nothing! So the question becomes, how do you close the income exposure gap?
The primary problem here is underinsurance. Most traditional insurance brokers are simply unaware that a viable option exists to fully insure their highly compensated clients. The secondary problem occurs when a void exists in the U.S. insurance market and the coverage an individual is seeking is simply unavailable - think those in the entertainment business and professional athletes. However, thanks to the powerful resources offered via the Lloyd’s of London market, high earning individuals can access extraordinary benefit limits to supplement the programs they have purchased here in the U.S. or secure coverage where options did not exist.
There are six products that make up the core programs in the Lloyd's DI portfolio. The first four are personal programs purchased by individuals to protect their future income and the last two are business programs utilized to insure a business owner's equity or the human capital one brings to an organization. These programs are described in greater detail in our resource page.
The 6 Different Types of DI Found in Lloyds
*Assuming the individual has $25,000/mo in domestic disability coverage in force and an annual income increasing by 3%.
