An Advisors' Guide to Excess & Surplus Disability Insurance

Unleashing the Power of the Excess Lines Market for Life Insurance Advisors

Posted Wed, Jan, 10th, 2024
By Exceptional Risk Advisors

Life insurance advisors understand the critical importance of advance planning. While traditional life insurance offers comprehensive coverage, there are scenarios that demand immediate attention and innovative solutions. Enter the Excess Lines Market, a powerful resource that provides two essential products for advisors: Accidental Death & Dismemberment (AD&D) and Contractual Performance Indemnity (CPI).

Accidental Death & Dismemberment: A Flexible Alternative
AD&D serves as an alternative, supplement, or short-term solution for individuals facing challenges in obtaining sufficient amounts of traditional life insurance. Key features include benefit amounts exceeding $100 million per person, 24-hour worldwide coverage, and policy terms ranging from 1 day to 3 years. This product becomes invaluable when urgent life insurance requests land on your desk, demanding quick action to meet contractual obligations.

We recently shared a case study on a highly compensated executive gearing up for a 3-week African Safari.  The traditional life insurance carriers had declined to provide the necessary coverage forcing the advisor to seek support outside the domestic market. 

Read the Full African Safari Case Study Here

Contractual Performance Indemnity: Swift Coverage for Contractual Needs
CPI is tailored for urgent contractual situations, providing coverage for death or disability risks. With benefit amounts reaching up to $25 million per person, 24-hour worldwide coverage, and streamlined underwriting with a 24-hour cycle time, CPI is a go-to solution for scenarios such as mergers and acquisitions, risky activities, international travel, and short notice life insurance needs for loans or contractual obligations.

Read a case study on a snow sports apparel CEO who required $10 million of immediate life insurance during Private Equity capital infusion.

Read the Full Outdoor Apparel CEO Case Study Here

Five Scenarios Where Excess Lines Market Shines:

  1. Urgent Life Insurance Request: Fulfill contractual obligations within a merger and acquisition or employment contract.
  2. Participation in Risky Activities: Coverage for hazardous avocations like scuba diving, mountain climbing, race-car driving, and more.
  3. Travel to Countries with Travel Advisories: Whether for business, pleasure, or humanitarian efforts, secure coverage for travel to high-risk destinations.
  4. Short Notice Life Insurance for Bank Loan: Meet unexpected life insurance requirements for securing a bank loan.
  5. Short Notice Life Insurance for Contractual Obligation: Ensure coverage in scenarios where contractual obligations demand swift action.

At Exceptional Risk Advisors, our goal is to complement and supplement the traditional market with additional limits and products, never to compete with it. AD&D and CPI solutions are deployed only when traditional markets cannot fulfill immediate needs. These tools should be a part of every advisor's arsenal, ready to seize last-minute and unique opportunities from clients and referral sources.

If you are interested in learning more about the Excess Lines market and Lloyd's of London, we extend an invitation to you for an exclusive webinar that promises valuable insights into the world of unique insurance solutions found in the Lloyd's of London market.

Join industry experts Frank Zuccarello and Sean McNiff of Exceptional Risk Advisors as they delve into the intricacies of unique insurance solutions available in the Lloyd's of London market. This webinar is designed to empower you with the knowledge and tools needed to incorporate these solutions into your practice for unparalleled success in 2024.

Register for the Webinar Here