Creditor-Personal: Term of Loan at Least 5 Years
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100% of current loan balance. Any future excess insurance payable to personal beneficiary or estate. The total line of insurance to be within Personal Insurance limit.
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Cover letter explaining length of loan, loan purpose and current loan balance, when coverage amount exceeds $1,000,000.
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Key Employee
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5-10 times annual income (including any bonuses). Up to 15 times annual income when evidence demonstrates greater loss to the company.
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Cover letter explaining proposed insured's key value to the business when amount exceeds $1,000,000 or if amount is more than 10 times income.
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Buy-Sell/ Buyout
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Percentage of ownership times value of the business.
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For amounts over $1,000,000, submit:
- buy-sell agreement
- current balance sheet and income statement of partnership or corporation
- cover letter explaining basis for business evaluation
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Creditor-Business: Term of Loan at Least 5 Years
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75% of current loan balance.
Sole proprietorship creditor coverage considered as personal insurance.
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Cover letter explaining length of loan, loan purpose and current loan balance and Business Financial Statement, when coverage amount exceeds $1,000,000.
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Charitable Contributions
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Average contribution for past 3-5 years times life expectancy based on current age.
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Contribution record and cover letter.
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Juvenile
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Up to 100% of amount of insurance on parent.
Equal amounts for all juvenile children in family.
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For amounts over $1,000,000 explain family background, including amounts of parents' coverage, parents' incomes, family net worth.
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Overall Limits - Combination of Purposes
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Sum of personal insurance plus key employee insurance to the extent the key employee coverage is not essentially personal coverage.
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As indicated above plus any pertinent data available for consideration.
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Exceptions
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Exceptions to all limits will be considered with well-documented information and explanatory letter.
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Field Underwriting Guidelines