Key to Success: Carrier Selection / Underwriting Exception
Applicant Summary:
- M, 32, NT, Healthy, Student Pilot with 40-50 Flight Hours
- Need: $5,000,000 of Level Term Life Insurance
Advisor calls CPS Advantage for a Second Underwriting Opinion on a new client who needs $5M term life insurance to protect his young family. He is learning to fly as a private pilot, having completed 40-50 hours of flight. The Advisor’s primary insurer requires a $3.00 flat extra per $1,000 of insurance to cover the aviation risk = $15,000 additional annual premium. Are there better alternatives with another highly rated life insurer?
Advisor’s Primary Insurer
- Requires $3/$1K Aviation Flat Extra
- Annual Premium: North of $20,000 with the $15,000 Flat Extra
Top Rated Alternate Insurer
- Standard Rates without Aviation Flat Extra
- Annual Premium: Just north of $6,088 for 30 year level term
- Approximate premium reduction: $15,000/year ($450,000 total)
