DI to the MAX Don t Leave Your Clients

DI to the MAX! Don’t Leave Your Clients Exposed! by Thomas Petersen, MBA, RHU Petersen International Underwriters Please contact your local Plus Group office for more information. Go to www. plusgroupus. com and click on the agency locator map to find an office near you or call 800/831 -1018. 1

What is Disability Insurance For? • Cash Flow? • Replacement percentages are to Stay Alive, not to Thrive! Asset Conservation! 2

To The Max • Not Enough Coverage • High Net Worth • Difficult Occupation • High Unearned Income • Difficult Avocation • Special Situations • Health Issues • Special Products 3

To The Max • Not Enough Coverage • High Net Worth • Difficult Occupation • High Unearned Income • Difficult Avocation • Special Situations • Health Issues • Special Products 4

Show Me the Max! 5

How Much Disability Coverage is Enough? 6

How Much? • Various 3 rd party surveys – 65% to 75% • Various Industry experts – 50% to 80% – LUTC – RHU – LOMA – The American College • Traditional Group Disability – 60% or 2/3 7

% Income Issued by Most Carriers If 65% is the agreed upon number, why does the primary markets limit the coverage? 100 75 70 60 50 40 30 20 0 The Need Line 75, 000 150, 000 300, 000 500, 000 1, 000 8

Excess Disability Not limited to just Personal Disability! – Buy-Sell – Business Overhead Expense – Key Person What are the maximums from most carriers? ? 9

The Buy Sell • Wholesaler Company – Valued at $7, 000 – 2 Partners • I need $7 million Life and $1, 000 DI Buy Sell! • The Solution – Excess Buy-Sell Disability 10

The $100, 000 BOE • 1 Doctor – Plastic Surgeon • Clinic, staff, airplane • Monthly overhead $100, 000 • Solution - $100, 000 BOE 11

$250, 000 Annually • $250, 000 Annually – $20, 833/month – Traditional = $8, 800 (43%) – Need = $13, 540! – Excess for $4, 740 Just to Stay Alive! 12

To The Max • Not Enough Coverage • High Net Worth • Difficult Occupation • High Unearned Income • Difficult Avocation • Special Situations • Health Issues • Special Products 13

I Have a Guy Who…. . • Actor 14

I Have a Guy Who…. . • Actor • Pilot 15

I Have a Guy Who…. . • Actor • Pilot • Martial Arts Instructor 16

I Have a Guy Who…. . • • Actor Pilot Martial Arts Instructor Oil Rig Fire Fighter 17

I Have a Guy Who…. . • • • Actor Pilot Martial Arts Instructor Oil Rig Fire Fighter Athlete 18

I Have a Guy Who…. . • • • Actor Pilot Martial Arts Instructor Oil Rig Fire Fighter Athlete Yacht Crew 19

I Have a Guy Who…. . • • Actor Pilot Martial Arts Instructor Oil Rig Fire Fighter Athlete Yacht Crew Teaching Pro 20

To The Max • Not Enough Coverage • High Net Worth • Difficult Occupation • High Unearned Income • Difficult Avocation • Special Situations • Health Issues • Special Products 21

A Great Case except…. 22

To The Max • Not Enough Coverage • High Net Worth • Difficult Occupation • High Unearned Income • Difficult Avocation • Special Situations • Health Issues • Special Products 23

Who CARES About the Occupation? 24

To The Max • Not Enough Coverage • High Net Worth • Difficult Occupation • High Unearned Income • Difficult Avocation • Special Situations • Health Issues • Special Products 25

We Build Assets Why Sacrifice Them? • High Net Worth? • High Unearned Income? 26

To The Max • Not Enough Coverage • High Net Worth • Difficult Occupation • High Unearned Income • Difficult Avocation • Special Situations • Health Issues • Special Products 27

The $30 Million Man • The problem – 10 lawyer firm – Annual revenue exceeded $30 Million – The Rainmaker! • The Solution – Key Person DI 28

The College Senior • Age 21 • Philosophy Student • 100 mph fastball! 29

Meet Smith and Jones • Scenario – Dr. Smith (30) wants to buy in to Dr. Jones (60) practice. – Goal – 5 year payments – Problem – What if Dr. Smith doesn’t make it? – What if Dr. Jones Doesn’t make it either? • The Solution – DI Buy-In 30

And FULL Benefits! • The problem – Company providing a severance package to include salary and benefits! • The Solution – Severance Disability Plan 31

The Golden Spike • The Problem – 3 Partners in business 20 years – Have DI Buy-Sell – 1 Partner is now 60 • The Solution – The Golden Spike DI Buy Sell to fill in the gaps 32

DI to the MAX! Don’t Leave Your Clients Exposed! by Thomas Petersen, MBA, RHU Petersen International Underwriters Please contact your local Plus Group office for more information. Go to www. plusgroupus. com and click on the agency locator map to find an office near you or call 800/831 -1018. 33