Principal was a great partner in this estate planning case. By providing clear direction regarding how to properly document not only net worth but also the key components of a complex estate plan, Principal was able to earn the case and the nearly $200K in Target Premium. Read on to find out how.


AT A GLANCE:

Underwriting: Financial Underwriting/Estate Planning
Target: $195,978

Situation:

  • A 47-year-old female was seeking $18MM of coverage to fund a multi-generational estate plan.
  • Her parents were in failing health with limited life insurance, placing their estate of more than $70MM at risk of severe erosion at their passing.
  • The Advisor knew that financial underwriting was the lynchpin of the case, but was unsure how to proceed on this complex case.

Solution:

  • John Williams, Principal Regional Chief Underwriter

Results:

  • John Williams scheduled a conference call with the Advisor to go over the estate plan.
  • Upon receiving the details, John outlined the following items needed:
    • Agent Cover Letter covering the following details:
      • Health history of the parents to confirm they are uninsurable
      • Verification of the parents inforce coverage
      • Verification of beneficiaries to the parent’s estate
      • Verification of beneficiary of the trust that will own the policy
      • Confirmation of the parent’s net worth
      • Confirmation of the insured’s net worth
      • Details on how the policy will be funded
    • CPA verification of the family’s net worth
    • CPA verification of the insured’s net worth
    • Net worth statement or balance sheet on both the parents and the insured
  • The Advisor acted quickly to provide all the documentation John had requested.
  • Armed with a fully documented file, Principal was able to approve and ultimately place the $18MM policy with a Target Premium of $195,978

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