When it comes to financial underwriting, we specialize in large death benefit applications. We have widespread expertise with aggressive financial guidelines to manage cases well beyond our retention limits.
What is financial underwriting?
Financial underwriting verifies a valid, insurable interest exists and justifies the amount of life insurance applied for. It helps maintain an acceptable level of persistency for all parties.
- The death benefit must approximate the financial loss to the beneficiary created by the death of the insured
- The amount of insurance is based on the financial details of the sale, not by the affordability of the premium
- Insurable interest is usually straightforward. If you have an unusual situation, call your underwriter
The writing producer is the key source of financial information. A cover letter explaining the sale’s circumstances can help speed the application process.
The letter should include:
- Background information on how the life insurance sale developed
- Purpose and need for life insurance coverage
- Income and net worth of the proposed insured or business
- Amount of insurance currently in force
- Applications submitted to other companies, their intended purposes and if you are the representative of record
- Amount of any coverage being replaced. State the reason for the replacement
- The total amount of coverage (from all sources)
- Whether the sale involves premium financing