New Loan Origination 

 

Situation/Challenge:  An experienced advanced market producer (“Agent”) needed support with medical underwriting, case design and premium loan structure/origination services.  The client (“Client”) was a very successful surgeon, seeking an IUL product having a $25 million death benefit.    Despite best efforts, the Agent was unable to obtain a standard medical underwriting offer.  The Client was unhappy with the carrier illustrations and proposed cost of insurance.  As the deal was slipping away, the Agent reached out to LPS for support and a solution.

 

LPS Solution:  LPS was able to support the Agent and the Client with a complete and integrated solution.  Working with our medical underwriting partner, LPS was able to obtain a written confirmation from the Client’s physician supporting the expert judgement of the medical underwriter, related to the medical records and test results.   The physician confirmed the patient had been 100% compliant with his health directives and the previous unhealthy test results were no longer a health concern.  Thanks to the physician letter, our underwriter was able to communicate effectively with the underwriters from multiple life carriers and was successful in obtaining Standard ratings from five major life insurance carriers.  

 

Once the Standard rating was attained, LPS worked closely with our case design partner and the Agent to select the very best IUL policy option for the Client.   For this particular Client, an IUL product from National Life Group/LSW was the most suitable option.   Once the insurance solution was complete, LPS was able to structure a long term premium loan solution for the Agent and the Client.   Working with one of its primary funding partners, LPS was able to arrange a 20-year premium loan.  The Agent and Client were pleased that the 20-year loan term better matched the long-term duration of the permanent life insurance product.    The insured also liked the fact that the loan was made on a non-recourse basis, with no personal guarantee required.    LPS managed the loan application and closing process on an efficient and timely basis.  Very soon after the loan was approved, the NLG/LSW policy was issued, the loan was closed, and the premium payment was funded.   LPS is proud to have supported the Agent and the Client with a total underwriting, case design and premium loan solution.