CASE STUDY: Obesity and Drug Abuse


Client profile: 

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.

CASE STUDY: Obesity and Drug Abuse
CASE STUDY: Obesity and Drug Abuse

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.

CASE STUDY: Obesity and Drug Abuse

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