Increases in I&P limits enable us to negotiate with carriers during the proposal and underwriting processes so we can find the best coverage for our clients.
MINNEAPOLIS, Minn. (PRWEB) October 21, 2015
People love getting more bang for their buck. When given the option of paying price A for product A or paying price A for products A, B, and C, most people will choose the latter option because they're getting more for their money. The same logic applies for purchasing disability insurance coverage. Cost is an important factor for clients when choosing to purchase a policy, but so are the benefits in the policy. This is especially important for high income earners because their policies are traditionally more expensive with limited benefits. This is why Secura Consultants, along with several leading insurance carriers, is excited to offer increased Issue & Participation (I&P) limits for high income earners who are now eligible for more comprehensive disability insurance coverage.
Executive Vice President of Secura Consultants, Jeff Pantze, said, "Increases in I&P limits enable us to negotiate with carriers during the proposal and underwriting processes so we can find the best coverage for our clients. There's more potential for carriers to split the risk with these higher limits, so it's like piecing together a puzzle, and we just need to find the right pieces."
National and global disability insurance carriers are raising benefit levels in the event of a claim, which has led to an industry-wide trend in raising I&P limits. This change was brought on after insurance carriers realized it is acceptable to provide more substantial disability insurance income coverage for high income clients because a more significant level of benefit income is necessary for these clients to fulfill the most complex personal and professional financial commitments and sustain their lifestyles.
Earlier in October, Principal Financial Group, a well known disability insurance carrier and long-time relationship of Secura Consultants, announced changes to both its I&P limits for Individual Disability Insurance. “These new limits allow high income clients qualify for more extensive disability insurance income coverage in the event of a disability,” said Secura Consultants’ Vice President, Nicole Blodgett. She added, “Another prominent disability income insurance provider, MetLife, has mitigated many of the restrictions on high-net-worth clients and their I&P limits are among the highest in the country, so they provide a great option in this high income market.”
In addition to the domestic carriers, Lloyd's of London offers additional flexibility in the high income marketplace. Lloyd's has the flexibility and creativity to take risks traditional carriers can't. Lloyd's isn't a competitor of the traditional domestic carriers, instead it offers solutions intended to fill in the holes traditional carriers leave when attempting to provide enough coverage for these high income and high net worth clients.
Previous industry I&P limits were significantly lower and generally did not provide enough coverage for a top earner. Domestic carriers maintained a cautious stance as the perception has been that the higher the benefit limit, the longer an individual remained on claim. Recent trends have led many carriers to accept that an appropriate income replacement percentage may be a better indicator and that the higher benefit levels perform adequately when working with highly motivated individuals with a significant desire to rehabilitate and return to work.
The Issue Limit is the maximum liability a carrier will accept for any individual or risk while the Participation Limit is the maximum amount of coverage overall that a carrier will provide in concert with other insurance carriers. The I&P limits allow insurance carriers to partner with one another to provide coverage for high income individuals.
About Secura Consultants
Based in the Twin Cities of Minneapolis and St. Paul, Secura Consultants is one of the few insurance marketing organizations in the country focused on delivering exemplary solutions in the income and asset protection markets as well as employer sponsored ancillary benefits. Secura Consultants works with several insurance agencies, advisors, and carriers to bridge the gap to find the best deal for the client and expedite the insurance policy purchasing process. We provide unique income protection solutions for unique advisors. For more information, contact Lauren Dries, Marketing Consultant, at lauren(at)securaconsultants(dot)com or call 952-224-5400.