The amount of guaranteed-issue life or disability coverage on any one insured increases as the size of the eligible group increases. For example, the guaranteed-issue offer for an employer-paid/ executive-owned life insurance plan on 10 eligible participants typically provides up to $200,000 of coverage on each executive; while the guaranteed-issue amount on a group of 75 participants typically provides up to $3,000,000 of coverage on each executive.
When an executive group cannot qualify for guaranteed-issue underwriting, “simplified-issue” underwriting may work. This approach is not as liberal as guaranteed-issue underwriting; however, it is more streamlined than full underwriting. Although it includes a short form application and health and avocation questions, it typically does not include a medical exam.
Employer-sponsored plans that typically qualify for guaranteed-issue and simplified-issue underwriting include: Executive Life Insurance Plans, Supplemental Executive Disability Plans, Deferred Compensation Plans, Supplemental Executive Retirement Plans, Death-Benefit-Only Plans and Stock Redemption Plans.
For more information on Multi-Life coverage, please contact Noel Anderson at 973-435-3791 or nanderson@madisonbrokerage.com
Madison Brokerage serves as a partner to independent agents, Certified Financial Planners, wealth managers, Fee Only Planners, CPAs and attorneys.
