Client Situation
A successful manufacturing company ABC Design Inc. is growing quickly with an acquisition of another company. The success of this transaction relies on solving many details including the large loan of $30,000,000 ABC Inc. is utilizing to finance this purchase. The bank is requiring life insurance coverage on the two partners of the business being purchased to secure this note. ABC Inc. wants to make sure there is no financial loss due to the death of one of these two key executives during the first year of merging their operations. They each have agreed to work at the new company for a minimum of 12 months. Purchasing two $15,000,000 life insurance policies in the domestic market will take a minimum of 30-90 days with no guarantee the coverage will be approved in the end. Each insured will need to complete medical exams, third party financial statements and underwriters will also need to collect medical records from all of their doctors.
IDU Solution
ABC Designs Inc. was able to secure Contract Protection Insurance polices for $15,000,000 each from IDU in 3 days. This coverage will provide the protection the company needs for the next year or until they can obtain a solution in the domestic marketplace. The insureds only needed to complete an application and supply the financial transaction details for IDU to make and offer and bind this coverage. This quick and convenient life solution helped ABC Designs Inc. solve a significant financial risk issue with ease.
