The Cover Letter



OUTLINE OF COVER LETTER

Summarize the application

o Client’s name, face amount, and product

o Beneficiary- relationship to client

o Owner- relationship to client

o Explain the exact purpose of insurance

o Detailed information about all inforce coverage

o Details of any plans to replace

o Clarify the amount of total insurance that will be in existence after all replacements, 1035’s, etc..

o If large dump in or 1035, document source of funds.

Clarify the financial objective

o Does it make sense?

o The need- who will lose how much?

o How was the amount determined?

o Business partners are underwritten together- if applying for both partners reference the other policy on the cover letter

Provide supporting financial documentation

o Personal/ Business financial statements

o Employment contracts

o Trust agreements

Agent’s Knowledge of the client

o Detail the Financial Advisors Qualifications/ experience

o Describe Financial Advisor and client personal relationship?

o Highlight the items that will allow for underwriting credits

o The proposed insured has never used tobacco

o The proposed insured has regular visits/checkups with Dr.

o The proposed insured has had cancer screenings by Dr.

o The proposed insured has regular aerobic activity.

▪ Recreation exercise__________________________________________

▪ Work related exercise________________________________________

o The proposed insured has regular strength training _____#/week

o The proposed insured has had a recent stress test

o The proposed insured has had a recent chest x-ray

o The proposed insured has had a recent mammogram

o The proposed insured has had a colonoscopy

o The proposed insured has an excellent driving record

o The proposed insured consumes alcohol beverage (approx ______servings/week)

o The proposed insured has completed.(High School, College, Additional degrees)

o The proposed insured has a history of living to age __________

o The proposed insured has ideal build and blood pressure.

o The proposed insured has a history of excellent diabetic control for the last ____years, and shows no evidence of diabetic complications

o The proposed insured has _____#dogs ____#Cats ____#other

o The proposed insured takes a consistent regimen of minerals/vitamins

o Client’s involvement in community? (coach’s basketball team, Mentor program, etc…)

Sample Cover Letter

January 1, 20__

Sample Insurance Company

Sample INSO address

City, State ZIP

Re: Application on ____client name________

Dear underwriter,

Please find the enclosed application for $10,000,000 of life insurance on the above client for the benefit of the insured’s children. The policy will be owned be a trust that was prepared by the insured’s JD. This insurance will be used to help fund the liquidity needed to pay estate taxes upon the insured’s death. Currently the Insured has 1 policy for $2,000,000 with ING and another policy for $2,000,000 with Prudential. His total death benefit of the inforce coverage totals $4,000,000 of death benefit. The enclosed application will replace the $2,000,000 of coverage with ING but the client intends to keep the Prudential coverage inforce. We hope to have the client insured for a total of $12,000,000 after we complete the underwriting and 1035 process from ING.

The client will fund a trust with annual gifts that will be used to pay the premiums on the $12,000,000 of coverage and the death benefits will be used to pay estate taxes upon the insured’s death. I have attached a financial statement and letter from the insured’s CPA verifying the amount of coverage is financially justifiable and needed.

During my 37 years of practice, this is one of my favorite clients. I meet ___client name___ 8 years when she moved to my neighborhood. Mrs, _____ is a 76 years old widow who has lived alone since the early 1990’s. She remains very physically, socially, and mentally active. Except for very inclement weather, her daily routine includes walking 2 ½ miles each morning and another 2 ½ miles in the evening. She has maintained the regime for some years. She reports that she seldom needs to visit her physician and only takes one prescription medication along with her vitamins/minerals.

She still actively participates in her outdoor gardening club that maintains the grounds at the entrance to our neighborhood. She also continues to work extensively on the flowerbeds at her one-acre home. She drives herself and maintains a clean driving record with no tickets or accidents in 14 years.

As a retired English teacher, one of her primary passions is reading fiction. She also keeps current on events and is quick to offer her opinion (or critique yours). She has traveled the world and her only complaints seem to be about the “old fogies” around the neighborhood that sit around doing nothing and not knowing how to have fun.

She notes that she is a lifetime non-smoker that has regular Dr.’s visits/checkups. She proactively goes through mammograms, skin exams, colonoscopy’s to maintain her health. She also checks her blood pressure each week that she does her grocery shopping. Her mother lived to age 96 and her father lived to 92. She has 2 small dogs and 1 cat that keep her smiling when they are with her. She admits to drinking a small glass of red wine in the evening before going to bed.

Please feel free to contact me if there is any additional information might allow her to get a better underwriting offer.

Sincerely,

Financial Advisor

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