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Guarantee Issue Business Insurance

Have you ever come across a guaranteed-issue key person DI plan? What about guaranteed-issue BOE coverage? GSI buy/sell insurance? While extremely uncommon and with limited scope in the traditional disability market, these programs do exist with high-limit, robust benefit structures. Encompassing the same incredible attributes and large multi-life premium discounts of more familiar guaranteed-issue group personal DI products, business insurance plans are great sales tools when approaching large and small companies with multiple proprietors or with a number of key personnel. Here are some examples and ideas for business uses for this type of coverage:

Key Person: A pharmaceutical company employs 33 regional sales reps who are experts in business development and maintaining client relationships. A loss of any one of them would certainly cause, at the very least, short-term fiscal concern for the company. A properly deployed Key Person GSI plan would be able to financially indemnify such a loss of any one or more strategic personnel.

Business Overhead Expense: A medical management firm oversees 16 separate physician practices under a shared corporate identity. Maintaining the huge monthly overhead of any one of the individual practices, should one of the physicians become disabled, would be a collective financial hardship. A BOE GSI plan would be the best solution in covering the monthly expenses of all participating practices over and above their individual policies.

Buy/Sell: A law firm of 127 attorneys, many of whom are included in a stock option program, provides an average of 7% ownership of the company to each equity partner. An appropriately devised Buy/Sell GSI plan would fund a buy/sell agreement to cover each of the stake holders on a guaranteed-issue basis.

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