Exposed! by Thomas Petersen, MBA, RHU Petersen International Underwriters

Transcription

1 DI to the MAX! Don t Leave Your Clients Exposed! by Thomas Petersen, MBA, RHU Petersen International Underwriters Please contact your local Plus Group office for more information. Go to and click on the agency locator map to find an office near you or call 800/

2 What is Disability Insurance For? Cash Flow? Replacement percentages are to Stay Alive, not to Thrive! 2

3 To The Max Not Enough Coverage Difficult Occupation Difficult Avocation Health Issues High Net Worth High Unearned Income Special Situations Special Products 3

4 To The Max Not Enough Coverage Difficult Occupation Difficult Avocation Health Issues High Net Worth High Unearned Income Special Situations Special Products 4

5 Show Me the Max! 5

6 How Much Disability Coverage is Enough? 6

7 How Much? Various 3 rd party surveys 65% to 75% Various Industry experts 50% to 80% LUTC RHU LOMA The American College Traditional Group Disability 60% or 2/3 7

8 % Income Issued by Most Carriers If 65% is the agreed upon number, why does the primary markets limit the coverage? The Need Line 75, , , ,000 1,000,000 8

9 Excess Disability Not limited to just Personal Disability! Buy Sell Business Overhead Expense Key Person What are the maximums from most carriers?? 9

10 The Buy Sell Wholesaler Company Valued at $7,000,000 2 Partners I need $7 million Life and $1,000,000 DI Buy Sell! The Solution Excess Buy Sell Disability 10

11 The $100,000 BOE 1 Doctor Plastic Surgeon Clinic, staff, airplane Monthly overhead $100,000 Solution $100,000 BOE 11

12 $250,000 Annually $250,000 Annually $20,833/month Traditional = $8,800 (43%) Need = $13,540! Excess for $4,740 Just to Stay Alive! 12

13 To The Max Not Enough Coverage Difficult Occupation Difficult Avocation Health Issues High Net Worth High Unearned Income Special Situations Special Products 13

14 I Have a Guy Who.. Actor 14

15 I Have a Guy Who.. Actor Pilot 15

16 I Have a Guy Who.. Actor Pilot Martial Arts Instructor 16

17 I Have a Guy Who.. Actor Pilot Martial Arts Instructor Oil Rig Fire Fighter 17

18 I Have a Guy Who.. Actor Pilot Martial Arts Instructor Oil Rig Fire Fighter Athlete 18

19 I Have a Guy Who.. Actor Pilot Martial Arts Instructor Oil Rig Fire Fighter Athlete Yacht Crew 19

20 I Have a Guy Who.. Actor Pilot Martial Arts Instructor Oil Rig Fire Fighter Athlete Yacht Crew Teaching Pro 20

21 To The Max Not Enough Coverage Difficult Occupation Difficult Avocation Health Issues High Net Worth High Unearned Income Special Situations Special Products 21

22 A Great Case except. 22

23 To The Max Not Enough Coverage Difficult Occupation Difficult Avocation Health Issues High Net Worth High Unearned Income Special Situations Special Products 23

24 Who CARES About the Occupation? 24

25 To The Max Not Enough Coverage Difficult Occupation Difficult Avocation Health Issues High Net Worth High Unearned Income Special Situations Special Products 25

26 We Build Assets Why Sacrifice Them? High Net Worth? High Unearned Income? 26

27 To The Max Not Enough Coverage Difficult Occupation Difficult Avocation Health Issues High Net Worth High Unearned Income Special Situations Special Products 27

28 The $30 Million Man The problem 10 lawyer firm Annual revenue exceeded $30 Million The Rainmaker! The Solution Key Person DI 28

29 The College Senior Age 21 Philosophy Student 100mph fastball! 29

30 Meet Smith and Jones Scenario Dr. Smith (30) wants to buy in to Dr. Jones (60) practice. Goal 5 year payments Problem What if Dr. Smith doesn t make it? What if Dr. Jones Doesn t make it either? The Solution DI Buy In 30

31 And FULL Benefits! The problem Company providing a severance package to include salary and benefits! The Solution Severance Disability Plan 31

32 The Golden Spike The Problem 3 Partners in business 20 years Have DI Buy Sell 1 Partner is now 60 The Solution The Golden Spike DI Buy Sell to fill in the gaps 32

33 DI to the MAX! Don t Leave Your Clients Exposed! by Thomas Petersen, MBA, RHU Petersen International Underwriters Please contact your local Plus Group office for more information. Go to and click on the agency locator map to find an office near you or call 800/