Disability Income (Busines)
Business Loan Protection
The Business Loan Protection (BLP) rider covers loans taken out for business-related expenses. This rider offers guaranteed premium rates until the client reaches the Termination Date: It cannot be conditionally renewed beyond the age 65 policy anniversary. It’s available as a cost rider on Overhead Expense insurance policies (HH 789 and HH 702) in approved states. This rider is not available in CA.
- Issue Ages: 18 to 60
- Occupation classes: 3A/3A-M and above
- Benefit Maximum: Up to $2 million
- Target Market:
- Owners of small to medium-size businesses
- Ages 35 to 55
- Often sold to accountants/CPAs, dentists and medical professionals
Buy-Out Insurance HH 703/HH 794
The HH 703 policy is conditionally renewable to age 65 with guaranteed premiums. The HH 703 is approved in all states except CA.
- Issue ages: 18 to 60
- Occupation classes: A to 5A/5A-M
- Must own a minimum of 5% of the business
- Minimum years in business: 1 year for service professionals and 3 years for other business owners
- Benefit Maximum: Up to $3 million (additional guidelines apply)
- Target Market:
- Smaller businesses with 2 to 10 owners
- Occupations classified as 3A and above
- Businesses not owned by spouses, parents and children or owners with large age differences
The HH 794 policy is conditionally renewable to age 65 or 67 with guaranteed premiums and also offers a one-way buy-out solution for sole proprietors. The HH 794 policy is not approved in all states.
- Issue ages: 18 to 60
- Occupation classes: A to 6A
- Must own a minimum of 5% of the business
- Minimum years in business: 1 year for service professionals and 3 years for other business owners
- Target Market:
- Smaller businesses with 1 to 10 owners
- Majority of policies sold are 3A/3A-M and above occupation classes
- Businesses not owned by spouses, parents and children or owners with large age differences
- Up to $20 million business value considered
Key Person Replacement HH 772
A key person is anyone critical to the livelihood of the business who is actively working full time and does not own more than 50% of the business. The HH 772 policy is not approved in all states
- Issue Ages: 18-55
- Occupation classes: 3A/3A-M to 5A/5A-M
- Small to medium-size business with:
- Employees who have specialties or experience not easily replaceable
- Key person life insurance in-place or being considered
- Target Market: business owners, corporate executives, medical professionals, attorneys, engineers and other professionals
Overhead Expense HH 702/HH 789
The policy is non-cancelable and guaranteed renewable to the insured’s age 65 policy anniversary or for five years from policy date, whichever is later. In states where the HH 789 product is not approved, the HH 702 product is available (excluding CA)
- Issue ages: 18 to 60
- Occupation classes: All (A to 5A/5A-M)
- Small to medium-size businesses with up to eight owners
- Maximum number of owners: Eight for fee-for-service businesses, four for other types of businesses
- Benefit Maximum: Up to $50,000 per month (additional guidelines apply)
- Target Market: Owners whose personal service is key to the continued earning of business income
Sales Tools
Audience | Document | Updated | Link |
---|---|---|---|
Producer Use Only | Forms | 04/24/2024 | Click Here |
Producer Use Only | Key Person Life/DI Calculator | 12/15/2023 | Click Here |
Producer Use Only | Multi-Carrier Underwriting Guide | 05/01/2024 | Click Here |
Product Resources
Audience | Document | Updated | Form Number | Link |
---|---|---|---|---|
Producer Use Only | Fact Finder Worksheet | 12/20/2023 | JJ1707-05 | Click Here |
Producer Use Only | Overhead Expense Product Profile | 12/20/2023 | JJ1648-07 | Click Here |
Producer Use Only | Key Person Replacement Product Profile | 12/20/2023 | JJ1699-06 | Click Here |
Producer Use Only | One-Way Buy-Out (HH794) Product Profile | 12/20/2023 | JJ2166-04 | Click Here |
Producer Use Only | Overhead Expense and Business Loan Protection State Approvals | 12/20/2023 | DI2696-04 | Click Here |
Producer Use Only | Buy-Out State Approvals and Transition Guidelines | 12/20/2023 | DI9404-04 | Click Here |
Producer Use Only | Buy-Out Product Profile | 12/20/2023 | JJ1700-07 | Click Here |
Producer Use Only | Business Loan Protection Product Profile | 12/20/2023 | JJ1873-04 | Click Here |
Consumer Use | “Are you insuring what you value most?” Consumer Brochure | 12/20/2023 | JJ1239-15 | Click Here |
Consumer Use | “How Your Disability Insurance Works for You” Consumer Brochure | 12/20/2023 | JJ1507C-04 | Click Here |
Consumer Use | Comprehensive Planning Consumer Worksheet | 12/20/2023 | JJ1834C-08 | Click Here |
Consumer Use | Overhead Expense Consumer Worksheet | 12/20/2023 | JJ1060-11 | Click Here |
Consumer Use | Overhead Expense Policy Highlights | 12/20/2023 | JJ1639C-04 | Click Here |
Consumer Use | Buy-Out Pitfalls of Disability Buy-Sell Agreements Consumer Flyer | 12/20/2023 | JJ1769-07 | Click Here |
Consumer Use | “How Disability Buy-Out Insurance Works” Consumer Brochure | 12/20/2023 | JJ2165C-03 | Click Here |
Consumer Use | Business Loan Protection Rider Consumer Highlights | 12/20/2023 | JJ1368-07 | Click Here |
Dedicated Team
2024 fmiAgent Point Awards
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