A-List Term TM
LIFE INSURANCE FOR HIGHLY
A specifically designed carve-out product for the institutional purchase of individual life insurance for executives, professionals, physicians and other highly compensated individuals – delivered on a specially tailored underwriting basis and pricing schematic.
[ key facts ]
- Issue ages 21-75
- $50,000 – $3,000,000 death benefit
[ Highlights ]
– High death benefits: up to $3,000,000+ based on group size (restrictions apply); $50,000 minimum.
– Maximum determined by multiplying covered lives by $20,000 for groups of 10-24; by $30,000-$40,000 for groups of 25 or more.
– 25+ Insured Lives: Ages 20-70: One medical question: “In the past 90 days has the proposed insured been absent from his/her customary place of employment for five or more work days due to illness or medical treatment.” Ages 71-75: several medical questions.
– 10-24 Insured Lives: Ages 20-75: Several medical questions, but still simplified underwriting.
– Minimum $100,000 annual salary/cash compensation ($75,000-$99,999 may be considered).
– Rate schedule guaranteed for first 3 policy years. Age and gender distinct; no distinction for tobacco use.
– Individual term life policies: portable at same rate schedule upon termination or retirement.
– Increasing Death Benefit Rider syncs with salary increases. Rider carries its own 3-year rate schedule guarantee.
[ Sales Opportunities ]
A-List Term Sample Cases
Carve-out Group life
Had group life insurance. Pulled partners and associates out and put into A-LIST. Group life rate reduced by half. CFO transferred the partner and associate risks to our non-experience rated platform.
A-LIST: Partners (91) – $3,000,000 each; Associates (132) – Two and a half times salary
Plans – Key-Man
Had no coverage for revenue loss in the event of death. Efficient administration; no exams. Individual policies allowed for corporate ownership. Physicians (63): Coverage amount – $1,000,000 each; Owner and beneficiary – Employer
Had another carve out plan (10 year level term) for highly compensated employees. CFO did not want to pay in advance any longer and the premium spike in year 11 was problematic. Consultants (71): Coverage amount class #1 – Three times salary; Coverage amount class #2 – One times salary
Had one times salary benefit on executives and physicians through group life. Put additional one times salary with A-LIST. COO liked the inherent portability of A-LIST and no automatic benefit reductions. Executives and physicians (262): One times salary – A-LIST; One times salary – Group life; Total two times salary
Had another carve out plan, group variable universal life (GVUL), for employees earning in excess of $75,000. HR director “tired and concerned” about staff confusion and administrative complexity. A-LIST premium approximately 35% less. Highly compensated employees (99): GVUL annual premium – $160,000; A-LIST annual premium – $117,000