by Eloise Glaspie Life Sales Relationship Manager
The old saying “things aren’t always what they seem” is one that proves itself true time and time again in the life insurance business. Just when you think you have a client completely figured out, you may learn something about his or her lifestyle that dramatically alters the case design, underwriting outcome or both. And sometimes the most conservative business clients can lead the most unconventional lifestyles outside of the office. The next time you have a business insurance case that isn’t what it seems, consider identifying all of your options and alternatives to ensure that you don’t let opportunity slip through your fingers.
THE FACTS
- Business looking to purchase key person insurance
- Male employee, age 26
- Serving as the warehouse supervisor
- Mixed martial arts competitor outside of work
THE GOAL
Help a rapidly growing business purchase key person insurance on a young employee who is integral to continued business success. To do so, the agent would need to complete solid field underwriting to assure the carrier that the individual’s lifestyle outside of work would not pose more risk than the carrier was willing to take.
THE COURSE OF ACTION
After just a short time in business, a manufacturing firm was projecting huge sales growth in its annual forecast, with no signs of slowing anytime in the near future. The business owner and other key stakeholders recognized the need to protect their investment and take out a key person policy on their warehouse supervisor. His skill set, knowledgebase and drive had become major contributors toward the efficiency and seamless operation of product coming and going from the firm. The client contacted his agent to discuss getting the policy placed, and the agent proceeded to apply with a carrier with which he felt comfortable. Much to his surprise, the policy came back declined, and he knew he needed to reach out for help.
Although the agent had been contracted through Creative Marketing for some time, he hadn’t yet taken advantage of the expertise and abundance of life resources available through Creative Life. He contacted the team to ask for assistance in getting this tricky case placed and immediately knew he’d made a smart decision.
THE SOLUTION
The Creative Life team went to work helping the agent conduct a more thorough investigation into the key person’s lifestyle, only to find that he was competing in mixed martial arts (MMA) competitions in his free time. Due to Creative’s work with various carriers who support niche markets, the team reached out to Transamerica to find out more about prequalifying the individual. The carrier came back with two requirements that would need to be met in order to get the policy placed: 1) the key person could not compete outside of the United States and 2) he had to maintain his amateur status in the sport. Additionally, the policy would be issued with a flat extra.
After confirming with the client and his key person these criteria would continue to be met and they were able to cover the cost of the policy payments, Creative worked with the agent to write a detailed cover letter confirming all of the information the carrier would need to issue the policy. As soon as the policy came through as planned, the business owner reached out to the agent to thank him for his work and move forward purchasing three additional key person policies on himself, the chief financial officer and the director of sales.
THE RESULT
For the client:
Although the key person’s lifestyle was a bit different than anticipated, the business owner was able to protect his rapidly growing manufacturing firm as they continued to increase sales and expand their market share.
For the agent:
The agent quickly realized what he had been missing submitting business on his own. With the help of Creative Life, he had turned one sale into four and successfully positioned himself as the expert.
Whether you’re looking to get a difficult case placed on an individual level or working an advanced life sales concept, life is easier with the help of a team of seasoned experts. Contact your Creative Life Sales Team to ensure that risk is only in the eye of the policyholder.
FOR AGENT USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. 12462 – 2012/8/28
Trendsetter® Super Series are term life insurance policies issued by Transamerica Life Insurance Company, Cedar Rapids, IA 52499 (Policy Form Nos. 1-322 11-107, 1-306 11-107, 1-305 11-107, 1-304 11-107, 1-303 11-107, and 1-334 11-107). Premiums increase annually for Trendsetter Super YRT, and beginning in year 11 for the 10- year policy, in year 16 for the 15-year policy, in year 21 for the 20-year policy, in year 26 for the 25-year policy, and in year 31 for the 30-year policy. Policy forms and numbers may vary, and these policies may not be available in all jurisdictions. Insurance eligibility and premiums are subject to underwriting.
Guarantees provided by life insurance are subject to the financial strength of the issuing insurance company; not guaranteed by any bank or the FDIC. Agents may not give tax, legal, accounting or investment advice. Individuals should consult with a professional specializing in these areas regarding the applicability of this information to his/her situation.