The client has several policies with ratings (due to his large build and diabetes) and was interested in increasing his coverage and reducing his premiums.
The client had no idea on how his policies were performing and was concerned if he could qualify medically for the insurance due to his health condition.
- A thorough audit was performed to determine if we could reduce the cost.
- Increase coverage and medically qualify him for the insurance.
- Through new underwriting and our impactful relationships with the carriers we were able to improve his risk class from heavily rated (up to Table 10) to a Standard offer (no rating).
- We were able to consolidate policies by going from 8 down to 6.
- Heavily Rated: Up to Table 10.
- Number of Policies: Eight
- Current Coverage: $5,000,000
- Current Premium: $127,500/year
- New Risk Class: Standard
- Number of Policies: Six
- New Coverage: $7,250,000
- New Premium: $98,400/year
With an improvement in risk class we were able to significantly increase the clients aggregate face amount by $2,250,000 or 45%. With an improvement in risk class and consolidating a few policies we were also able to reduce the client’s annual premium by $29,100 or 22%. The annual reduction in premium resulted in a $291,000 savings over the next 10 years.