The rule of thumb for single DUI incidents has always been that new life insurance coverage just isn’t available until you’re a year out from your finger missing your nose, your liver functions are normal and there is no history of alcohol abuse. Or at least that’s what I thought the rule of thumb was.
Recently a customer called, a businessman who needed $3 million worth of life insurance of business key man coverage. He needed it now, not later. He had a NW Mutual agent who said he could get him approved. I shared with him that I kind of doubted that, but along with a Lloyds of London quote, I would shop it and see what was available. The Lloyds policy is an instant issue business policy that excludes any death related to alcohol and came in at about $12,000 a year. He said that was very close to what the NW Mutual agent was quoting, although now through a different company. I told him that my quotes would be coming in within a few days and he could have all the cards on the table then.
It seemed as the quotes started streaming in that the underwriters had conferred and voted that this case was a standard, plus a flat extra of $3.50 per thousand for at least two more years, some three. The standard rate ran from $5-$6000 per year and the flat extra translated into an additional $10,500 putting the policy at least for two years at around $15,000+ a year. I related this information as it came in since he was ready to pull the trigger with the NW Mutual agent’s mystery company if I couldn’t beat the $12,000. My last quote came in and before I called the customer to let him know there was a company willing to approve him at standard table 1, about $7100 a year, I double checked with the underwriter and they said that if his liver functions were good and he didn’t have a history of alcohol abuse they were definitely on board at that rate.
I checked one more thing because I got a bit of a greedy streak going and asked if the fact that he was driving under the influence of medication for chest congestion prescribed at a hospital emergency room, as opposed to drinking too much, made any difference and they said no. That was the rate either way. So I called my client and let him know what I had and that it was in writing and verbally confirmed. He was ecstatic and said he would run it by his partner the next day. I talked to him the next day and his partner said to go for it so I sent an application and ordered an exam. He said he would be traveling and would get the exam done when he got back.
Long story short things began to drag and the he called and said his partner had asked the NW Mutual agent to get appointed with the company I had quoted and he had already signed an application through the other agent.
Bottom line. I would make this post about being thrown under the bus, but the good news is that in the absence of elevated liver functions or a history of alcohol abuse, we now have a company that can get us approved life insurance at a reasonable rate just 3 months out from a single DUI incident. If you have any questions or think your situation might fit into this scenario, call or email me directly. Do not call your NW Mutual agent. My name is Ed Hinerman. Let’s talk.