Narcotic Exclusion Rider

The Problem: Narcotic Prescribed by “Buddy” Dentist

Our Financial Advisor calls for help: “My primary company, a well-known mutual life insurer, declined my early 30s client who needs $10M life insurance to fund a buy-sell agreement between him and his business partners. Until recently, he used opioid pills – prescribed without documentation by a buddy dentist. Can we help?”  Yes!  We’ll be able to offer life insurance coverage with a narcotic exclusion rider.

The Solution: Narcotic Exclusion Rider

Our team of underwriting directors found one insurer willing to offer coverage, in California, with a narcotic exclusion rider.  This means no death benefit will be paid, if the insured dies due to circumstances involving the use of narcotics. The client, who has stopped using pain pills, is happy with the outcome, as are his business partners. Since he no longer uses narcotics of any kind, there should be no risk of death from the use of pain pills.  Our Advisor is also very happy with being able to place a policy with a premium just north of $30K.

The Plan: Remove the Narcotic Exclusion Rider

The $10M policy will be placed with the narcotic exclusion rider.  Assuming the insured abstains from narcotics for the next two years, he should qualify for lower priced coverage without an exclusion rider.  The Advisor will schedule a follow-up with the insured to apply for fresh coverage prior to the 2nd policy anniversary.

Your Opportunity:

Are you having difficulties placing life insurance coverage on a unique risk?  Would you like to schedule a call, or Zoom, to review the facts and explore if exceptions may be available to place coverage on your client?  Reach out to your CPS Advantage Representative, a member of the Marketing Team, or connect with us via email.  Let’s put our heads together and explore the possibilities.