An advisor colleague called me and asked if I could help his brother. He had tried to get life insurance for him but was declined. My niche is collaborating with other advisors who need help moving hard-to-insure clients and cases that have been declined, as I understand what underwriters and reinsurers are looking for.
I said, “Sure, I’ll give it a shot.” So, I phoned the 41-year-old client to hear his story.
He had been declined for hard drug use — something he hadn’t done in three years. Though differently assessed in other markets, in Canada, an individual is customarily declined coverage if cocaine has been used within the last five years of an application, which was the case. So, I sought more details about his past to understand how I might be able to help him. When the client was young, his father passed away, leaving behind his mother and his two older brothers (the advisor who contacted me, and another who has multiple sclerosis). His mother thought it prudent to have a male friend of the family play the paternal role to these three boys.
Unbeknownst at the time, this man was a child abuser. The client was his target. Being terrified of voicing what was taking place, he was the subject of sexual abuse for years. His mental and physical battles led to his turning to drugs and alcohol as an escape, and he lived a not-so-pleasant life. In his young adult years, he pressed charges. The situation worsened when his abuser was arrested and taken to court — the ugliness of past years unfolded again.
The client entered a rehabilitation facility, met someone who became his new life partner, and they had just had a little boy. He was adamant about getting life insurance for his family.
It is our responsibility in our profession to best serve our clients. I phoned a few reinsurers and asked them to look not only at this case, but at this person. I Googled the rehab center, did background research and presented the reinsurers with a collection of information for assessment, assuring them the applicant was not only “clean” but was now counseling other users who were facing detrimental positions.
Once they agreed, I asked which insurer I should place the coverage with. Ironically, I was told to place the business with the company that had just declined him. I phoned their chief underwriter, told him we would be reopening the file and explained why.
When I called the client, he was driving his truck, and I suggested he pull over.
“You’re going to give me bad news, right Mich?”
“Well, I’m going to give you news.”
I told him we secured the insurance. “Can I afford it?” He was anticipating a significant extra rating to be applied.
“It’s standard, no extra,” I said. “Yes, you can absolutely afford it.”
He started crying. “My son will never, ever be put in the same situation as mine.”
This was only a $1 million term policy for far less than $100 a month because that’s all he could afford. Concurrently, I had settled a sizable case with the same company, and the president, who I have known for years, called to say thanks. My response? His call was based on the wrong policy. I instead needed to thank him, the company and their team. Together we made an impactful difference on someone’s life and legacy.
