Securing key man insurance if you have a health problem can be challenging. However, there are several key tips that can help you get a positive result. Following is a real key man life insurance case that we worked at MEG Financial. The names have been changes to protect the identity of the individual and the company.
Gregory French, a business owner in Louisiana contacted us seeking $1,755,000 of key man life insurance to cover a loan his company was taking out as part of a business expansion and building acquisition. He had previously applied for key man insurance with his local agent that he had worked with for many years and was declined due to a prior heart condition. He subsequently searched the internet and quickly discovered that most agents didn’t have the expertise or willingness to do the work required to help him.
At that point, Mr. French found our company, MEG Financial, as we specialize in key man insurance but more importantly have extensive experience with all types of heart conditions, diabetes, prostate cancer and many other common medical conditions.
After speaking with Mr French, age 56, we discovered that he had a complex history of several heart problems and the case was gong to be very difficult due to the early onset of these conditions. In most cases like Mr. French’s, 99% of all agents would submit an application for insurance and hope for the best outcome. However, this approach offers extremely limited options and usually ends in negative results. Furthermore, if Mr. French is declined, it may create a bad impression with other insurance companies that he may apply with in the future.
Our approach to getting key man insurance if you have a health problem is simple and pain free. The first step was to explain to Mr. French up front that his case was going to be tough and if we were able to secure an offer for key man insurance that it would be expensive. Instead of submitting several applications for insurance with several different companies, we decided to take the more comprehensive (and labor intensive) approach of ordering Mr. French’s medical reports from his cardiologist and primary physician and shopping his options with many companies for potential offers.
This process, called a “Trial Application” guaranteed the best results for Mr. French as it allowed us to shop with over 80 companies the specifics of his medical records and gave each insurance company the opportunity to review the records and make formal offers based on their risk assessment. Essentially, we asked the insurance companies to make bids on the case. Mr. French liked the approach as he was tired of going through the key man application process and being turned down.
With Mr. French’s authorization, our office ordered his medical records from his physicians and a written summary of his health history and insurance needs was sent out to 80+ insurance companies for informal review.After 5-7 business days, our office began to receive responses from insurance companies that reviewed the case. Unfortunately, we got decline after decline on Mr. French’s trial application.
Finally, after 30+ declines, we were able to secure an offer for key man insurance for Mr French with a highly respected insurance company. While the offer was expensive, it was an offer and Mr. French badly needed the coverage. We formally submitted an application for the key man policy and Mr. French was approved and accepted the policy for $1,755,000. Mr. French was ecstatic with outcome and appreciated our professional approach to helping him to secure his key man policy.
Getting key man insurance if you have a health problem doesn’t have to be nightmare. If you have a need for key man insurance or life insurance in general and you have a medical condition or have been turned down for life insurance, call us today at (877) 583-3955.