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The Best Way To Purchase A Large Life Insurance Policy: $20-$100 Million-What You Should Know

by Scott G on March 13, 2013

$20, $30, $40, $50 to $100 million life insurance

 How To Get A Large Life Insurance Policy Approved $20 Million To $100 Million

Attaining an approval from the insurance company on a large face amount life insurance policy should not be something left to chance.  Unfortunately, it usually is when clients work with an inexperienced agent not familiar with the nuances of large risk underwriting.  Each large life insurance policy has its own set distinct characteristics and should be handled with care.  Most agents who are not experienced with large policies tend to be overzealous and rush through the process in hoping not to lose the “big” sale.  Typically these agents only compare rates as the determining factor in choosing the right company and nothing else.  More often than not, this won’t be right company for the client and will end up costing them much more in premiums and in valuable time than if you worked with an experienced agent who had done their due diligence. 

High Profile Clients

When the insured is a high profile client, such as a celebrity, athlete, or a very wealthy individual the risks will be viewed differently by each insurance company.  Also, dynamics such as age, foreign travel, aviation, and occupation should be carefully discussed before a formal application is submitted to the insurance carrier.

Another important factor to be aware of is that each company will view financial justification differently, which is why just sending an application to the first lowest priced carrier on a spreadsheet is usually not going to end well.

Preliminary Assessment

To assure you are getting the lowest rate and that the carrier will offer you coverage it is best to do a preliminary assessment.  This is done before any formal applications are submitted.  This entails the agent receiving the client’s medical records after they have signed the necessary authorizations.  The agency’s in-house underwriter will then review the information to make sure the formal application is sent to the right insurance carriers.

Informal Inquiry

Another strategy that is often used for large polices is what is called an informal inquiry.   This involves sending a synopsis of the case to the carriers for an informal review. 

Mitigate Risk

Another strategy I like to use with my clients, when possible, is to purchase multiple polices from different carriers to mitigate the risk of being with only one carrier.


An experienced agent will use a well implemented strategy and follow these important steps to minimize the chance of any potential surprises that could occur during underwriting.  This will help the client save money and valuable time.

I specialize in working with high-net-worth individuals and securing large face amount approvals.  If you would like a free quote or needs analysis, please just fill out the form below and I will get back to you as soon as I can.

    Photo: San Diego Air & Space Museum

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