In those instances where the case submitted isn’t as black and white as one would hope, a well thought out cover letter inclusive of case details will aid in the underwriting process. We worked with our underwriters at Lincoln Financial to provide some guidelines
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Cover Letters - The When and Why
We worked with our underwriters at Lincoln Financial to provide some guidelines:
The general rule
In those instances where the case submitted isn’t as black and white as one would hope, a well thought out cover letter inclusive of case details will aid in the underwriting process.
When to use:
- Age and Face Amounts – over 55 years of age AND 5 Million or more of face amount
- Business Coverage for several partners or key persons
- Criminal activity
- Bankruptcy
- Rated or declined offers by other carriers
Additional Specifics
- For personal needs coverage, provide client background regarding profession, occupation, employer as well as financial details including earned and unearned income sources and net worth, and explanation as to how the amount applied for was determined.
- For business needs coverage on all cases, provide details on the type of coverage being applied for (key person, buy/sell, private equity/venture capital, stock redemption, etc.), company background and value, client income (salary and bonus structure) and how the amount applied for was determined.
- For cases involving criminal history, provide details outlining what lead to the conviction, the type of conviction (misdemeanor or felony), date of conviction, dates of incarceration, if any, and date probation ended.
- For bankruptcy cases, provide details outlining the cause for bankruptcy, date it was filed and discharged, the type (Chapter 7, 11, 13, etc.) and what steps have been taken since to avoid recurrence.
If there is ever a question on using or creating a cover letter, your case manager as well as Chase and Tim are here to help. Please use us to determine if a cover letter is needed and if one is needed we are here to help in the creation.
