Insurance Agent Forum

[agent C]

How do most of you get your big life policies, are they mostly well to do business owners and how long does it take you to get them issued?

[STIBROKER@AUSTIN.RR.COM]

What do you consider big.....

[agent C]

I guess big is a relative term. Since life insurance is not my primary line I think anything over $2500 paid annual premium is big. All I ever seem to get are $300 to $1000 policies.

[STIBROKER@AUSTIN.RR.COM]

Most of my policy's are in the $500,000 to a Mill rage for face amount....and prem.'s are dictated by age.....my biggest was a $Mil at $1,200 a month.....it was off a health insurance lead.....

[agent C]

Was that a purchased online lead?

[STIBROKER@AUSTIN.RR.COM]

Referral from a P&C office......

Originally Posted by agent C

was that a purchased online lead?

[insuranceexec]

It really depends on the market. I have Premium Financing shops that their average case is roughly 70K in target premium.

IMO the cases that you are referring to is that of Advanced case design and COLI's.

Advanced case design is for people with estate liquidity problems.

COLI's are some times referred to as "Key Man" insurance, and are designed to provide either a business owner or a Key employee with insurance for a variety of reasons.

[Marpol]

Originally Posted by insuranceexec

It really depends on the market. I have Premium Financing shops that their average case is roughly 70K in target premium.

IMO the cases that you are referring to is that of Advanced case design and COLI's.

Advanced case design is for people with estate liquidity problems.

COLI's are some times referred to as "Key Man" insurance, and are designed to provide either a business owner or a Key employee with insurance for a variety of reasons.

COLI (Corporate Owned Life Insurance) is a very specific type of policy designed for high cash values (90%-100% CV of premiums paid the first year). This is because business often want to keep the money they pay for life insurance on there books. COLI min premiums are normally 100k+ per year, but are often much higher. Key Man policies do not have to be COLI. Most carriers allow companies and business to own there non-COLI products. Comp is also significantly different for COLI products.

Large cases is very relative. For some 10k a year in premiums is a lot....for other 200k a year is a lot. Normally large cases invoke a lot of advance planning or special underwriting and often take a long time. Although if everything is in order sometimes they move quick...it all depends.

[TEXAS PITBULL]

I've had BIG ones FLY through!

[Amber Scherloz]

In my case I would consider having the right timing in selling. There are times when the client is just in need of such and willing to buy a big life policy.