CASE STUDY: Obesity and Drug Abuse
The client was at 320 pounds before having the surgery. He had consistently been at 205-210 for the past year and a half. Client had obesity history with gastric sleeve surgery 2 years ago and a drug abuse history of using Cocaine and Oxycontin over 13 years ago. M39 desired $2.5 M of UL for personal needs.
What were the challenges?
The drug history was a serious obstacle to getting any offers. The relatively recent surgery and obesity history make the case more of a challenge for carrier underwriters. The impairment combination left us with a few carriers to choose from.
What was the First American solution?
Fortunately, two of the responses were in the preferred categories and one was at a table B. We worked with the underwriter to ensure that the formal application would be accepted.
What was the outcome?
The client and broker were very happy to accept a preferred plus nonsmoker IUL policy and structured monthly premium of $2,000 monthly. The plan was designed to have funding for 20 years. The client thought of the plan as a tax-sheltered supplemental retirement allowing for needed life insurance while including living benefits. A policy in the preferred classification for this risk was an exceptional service.