June 2021 - SRS Inc

4 Misconceptions Clients Have About Disability Insurance

September 25, 2026June 30, 2021 by Tim Fuller

Professional working confidently at her desk, representing disability income protection

Clients’ beliefs about disability often keep them from buying coverage. Most of those beliefs are wrong, and correcting them is one of the most effective ways to open the conversation.

Key takeaways

Most disabilities are caused by illness, not accidents, and the vast majority aren’t work-related, so workers’ comp doesn’t apply.
Sick leave and vacation cover days or weeks, not a disability that lasts months or years.
Social Security estimates just over 1 in 4 of today’s 20-year-olds will become disabled before full retirement age.

Clients often guess their odds of disability at 1 in 100. Social Security’s estimate is just over 1 in 4.

Misconception 1: “Workers’ comp will cover me”

Research from the Council for Disability Awareness found over 95% of disabling illnesses and injuries aren’t work-related, so workers’ compensation doesn’t apply. Most disabilities come from illnesses, not accidents. See what workers’ comp doesn’t cover.

Misconception 2: “Sick leave and vacation are enough”

In consumer surveys, many people say their sick days and vacation would carry them. Those last days or weeks. A long-term disability can last years.

Misconception 3: “It won’t happen to me”

People often put their personal odds of disability around 1 in 100. The Social Security Administration estimates just over 1 in 4 of today’s 20-year-olds will become disabled before reaching full retirement age. Many people have also never thought about how they’d protect their income.

Misconception 4: “Cancer is the leading cause”

Industry claims data has consistently shown musculoskeletal and connective tissue disorders, such as back problems and arthritis, as the leading cause of long-term disability claims, with cancer second.

Use the facts to start conversations

Most consumers say planning for lost income matters at any age, which is an opening with younger clients especially. Try three questions that lead to the sale.

Frequently asked questions

What is the most common cause of disability?

Musculoskeletal and connective tissue disorders, such as back injuries and arthritis, are the leading cause of long-term disability claims.

What are the odds of becoming disabled?

The Social Security Administration estimates just over 1 in 4 of today’s 20-year-olds will become disabled before full retirement age.

Does workers’ comp cover most disabilities?

No. Most disabilities aren’t work-related, so workers’ compensation doesn’t apply.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.

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When the Policy Owner Dies First: Why Contingent Owners Matter

September 26, 2026June 29, 2021 by Tim Fuller

Advisor and client reviewing an advanced markets estate planning strategy in a private office

Advisors spend a lot of time choosing contingent beneficiaries, but far less on contingent owners. When the owner and insured are different people and the owner dies first, the policy contract, not the owner’s will, decides who owns the policy next. One real case shows how badly that can go.

Key takeaways

When an owner dies before the insured, many policies default ownership to the insured, regardless of the owner’s will.
If the insured is a minor, changing ownership may require a court order naming a guardian of the minor’s property.
Naming a contingent owner, or using a trust as owner, avoids probate delays and unintended control.

The carrier’s answer: we must follow what the contract states, not what was indicated in the will.

The case: a grandfather, a grandchild and a will

A single grandfather wanted to buy coverage on his five-year-old grandchild. He loved the child’s parents but worried they might tap the cash value during hard times. The agent suggested a trust, but the family’s attorney didn’t like living trusts. Instead, he drafted a new will with a testamentary trust to receive the policy at the grandfather’s death, and the grandfather was named owner.

Two problems should have been considered. If the child died first, the proceeds would be part of the grandfather’s estate. If the grandfather died first, the policy would go through probate before reaching the trust.

What actually happened

The grandfather died first. When the executor tried to move ownership to the testamentary trust, the carrier explained that under the application, ownership automatically reverted to the insured, the minor grandchild. The carrier had to follow the contract, not the will.

To change ownership, the family would need a court order naming a legal guardian of the minor’s property. Otherwise, no transactions would be allowed until the child reached age 15. Even after the court process, the likely result was exactly what the grandfather wanted to avoid: the parents controlling the policy.

Why this is more common than you think

Default-owner provisions naming the insured are common. The issue rarely comes up because the owner is usually the insured, an entity that doesn’t die (like a trust) or a younger person. But it happens often enough that at least one major carrier has staff dedicated to “dead owner” cases.

How to prevent it

Whenever owner and insured differ, name a contingent owner on the application.
Consider a trust as owner when control matters. Our guide to trust types covers the options.
When a minor is involved as insured or beneficiary, review how the contract handles ownership and payouts. See our article on naming minors as beneficiaries.

Frequently asked questions

What happens to a life insurance policy when the owner dies before the insured?

Ownership passes to the named contingent owner. If none is named, many contracts default to the insured, or to the owner’s estate, depending on the policy language.

Does a will control who owns a life insurance policy?

Not necessarily. The carrier follows the contract. If the policy names a contingent owner or has a default provision, that generally controls over the will.

How can a client avoid ownership problems?

Name a contingent owner whenever the owner and insured are different, or have a trust own the policy.

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Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

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Term Conversion Reviews: Following Up on Your Term Life Sales

September 26, 2026June 28, 2021 by Tim Fuller

Term insurance is often sold as the lowest-cost way to cover a need for a set period. Then it’s forgotten until the level period ends and the premium jumps. A simple conversion review process keeps clients protected and creates natural opportunities for permanent coverage.

Key takeaways

Most term policies let clients convert to permanent coverage without new underwriting, usually up to a set age.
Conversion premiums are based on attained age, so waiting makes the permanent policy more expensive.
Level term periods often end before the client dies, so conversion may be the only way to keep coverage if health changes.

With life expectancy in the mid-80s, the level term period will often run out before the client does.

Why term clients need follow-up

The idea of “buy term and invest the difference” works only if the difference is actually invested. More often, clients pay the term premium and spend the savings elsewhere. Years later, the level period ends, the premium rises sharply and the coverage lapses just as the client’s health and age make new coverage harder to get.

How term conversion works

A conversion option lets the client exchange term coverage for a permanent policy without additional underwriting. Key points:

Conversion is usually allowed until a certain age, commonly 65, 70 or 75, or until the end of a set conversion period.
The premium is based on the insured’s attained age at conversion, so earlier conversions generally cost less.
Conversion is especially valuable if the client’s health has changed since the policy was issued.

Conversion rules vary by carrier and product, including which permanent products are eligible.

Build a review process

Set a regular review for every term client, and flag clients approaching conversion deadlines. Even when converting isn’t right yet, the conversation often uncovers new needs or leads to referrals. Some clients may also benefit from newer product features; see our article on carrier upgrade programs.

How SRS helps

We can confirm whether a client’s term policy has a conversion option, check deadlines and eligible products, and provide marketing support to turn those reviews into permanent sales. Contact us with a list of term clients you’d like reviewed.

Frequently asked questions

What is a term conversion option?

It lets a policyholder change term coverage to a permanent policy without new medical underwriting, within the carrier’s time and age limits.

When should a client convert term insurance?

Generally as early as it makes sense, since premiums are based on attained age. Conversion is especially valuable if health has declined.

Is there a deadline for converting term life insurance?

Yes. Most policies allow conversion until a certain age, often 65, 70 or 75, or until the end of a set conversion period. Check the specific contract.

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Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

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Simplified Issue vs. Full Underwriting for Disability Insurance: Which to Use

September 25, 2026June 23, 2021 by Tim Fuller

Disability underwriting has a reputation for being slow and invasive. Simplified issue programs change that for many clients, but they’re not always the best choice. Here’s how to decide.

Key takeaways

Simplified issue DI can require no exam, labs, or tax returns, just an application and a short phone interview.
Some policies issue within about 48 hours of the interview.
One program allows business owners 50 and under up to $25,000 a month combined: $15,000 of BOE plus $10,000 of individual DI.

No exam, no blood, no tax returns — a 15-minute phone interview, and the policy can be issued in about 48 hours.

How simplified issue works

After the application is submitted, the client completes a phone interview of about 15 minutes. With no exam, blood, urine, or tax returns required (financial documents may still be needed in some states, such as California), policies can often be issued within about 48 hours. Coverage is typically non-cancelable and guaranteed renewable to 65.

What’s available

One program lets business owners age 50 and under buy up to $15,000 a month of business overhead expense coverage plus $10,000 a month of individual protection, a total of $25,000 of monthly benefit, with issue ages to 64. Simplified limits are usually lower for older ages and some occupations.

When to use simplified issue

Healthy clients who need coverage quickly or dislike exams
Business owners with group LTD caps below 60% of pay
Supplementing existing coverage within simplified limits

When full underwriting is better

Benefits above simplified issue limits
Clients who want the richest contract provisions or lowest price available
Clients with health history that may be rated or excluded; full underwriting can sometimes produce a better result

See seven things to know about underwriting DI cases.

Frequently asked questions

What is simplified issue disability insurance?

Coverage issued with limited underwriting, often just an application and phone interview, without exams, labs, or tax returns.

How fast can simplified issue disability insurance be issued?

Often within about 48 hours after the phone interview.

Is simplified issue disability insurance more expensive?

Not necessarily, but benefit limits are lower, and fully underwritten policies may offer better pricing or provisions for some clients.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Golden Handcuffs: Vesting Schedules in Executive Bonus Plans

September 26, 2026June 22, 2021 by Tim Fuller

A Section 162 executive bonus plan is one of the simplest ways to reward key employees. Its biggest drawback has always been control: the executive owns the policy and can walk away with it. A vesting-style repayment schedule and a restriction endorsement can add the “golden handcuffs” employers want.

Key takeaways

In a basic 162 plan, the employer pays the premium as a deductible bonus and the executive owns the policy.
A repayment obligation that phases out over time creates a vesting schedule without turning the plan into split dollar.
A restriction endorsement filed with the carrier limits the executive’s access to the policy during the vesting period.

The loss-of-control problem can be reduced, if not eliminated, with two simple features.

Why executive bonus plans are getting attention

Qualified plans have non-discrimination limits. Deferred compensation and split dollar plans can involve significant regulation, administration and reporting. The Section 162 executive bonus plan stands out for its simplicity: the employer pays the premium, deducts it as compensation and reports it as income to the executive, who owns the policy.

The catch is that if the executive leaves, the policy, and the employer’s investment, goes with them.

Feature 1: A repayment schedule that vests

The bonus agreement can require the executive to repay some or all of the bonuses if they leave early. The obligation typically phases out over time, for example a declining percentage each year, creating a vesting schedule similar to repayment terms on relocation expenses.

Because the employer has no interest in the policy, the plan doesn’t drift into split dollar territory. And because no compensation is deferred, the deferred compensation rules generally don’t apply. Clients should have their legal advisor draft the agreement.

Feature 2: A restriction endorsement

A restriction on the owner’s rights can be filed with the carrier. For the agreed period, the executive can’t surrender, borrow from or change the policy (other than the beneficiary) without the employer’s consent. That locks the policy down and gives the employer time to enforce its right to recover premiums if needed. Availability of restriction endorsements varies by carrier.

Designing the plan

Vesting schedules work well alongside other design choices, such as whether the employer also bonuses the tax. See our article on single vs. double bonus plans. Many designs use cash value products; we also cover funding executive bonus plans with indexed UL.

We provide case design, documentation and presentation support. Contact us to discuss a business owner client.

Frequently asked questions

What is a golden handcuff in an executive bonus plan?

It is a provision, usually a repayment obligation and a policy access restriction, that encourages a key employee to stay by making early departure costly.

Does a repayment schedule make the plan split dollar?

Not if the employer has no ownership interest in the policy. The repayment is a contractual obligation between employer and employee.

Is the executive bonus deductible to the employer?

Generally yes, as reasonable compensation. The bonus is taxable income to the executive. Clients should confirm with their tax advisor.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

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Life Events That Should Trigger a Life Insurance Coverage Review

September 26, 2026June 21, 2021 by Tim Fuller

Clients’ lives change every year, but they rarely stop to think about life insurance when they do. A new home, a new baby or a promotion changes what they need, and it falls to the advisor to notice. A simple review process tied to life events keeps clients properly covered and opens new conversations.

Key takeaways

Buying a home, having a child, marriage, divorce and promotions all commonly change a client’s coverage needs.
Some carriers let recently insured clients add coverage at the same underwriting class for a limited time.
Reviews can also uncover older policies with cash value that could buy more guaranteed death benefit through a 1035 exchange.

When life changes, most people think about their day-to-day life, not about how much life insurance they need.

Life events that change coverage needs

Buying a home. A new mortgage raises the amount a family would need to stay in place.
A birth or adoption. More dependents and more years of support.
Marriage or divorce. New obligations, and beneficiary designations that may need updating.
A promotion or raise. More income to replace. See our article on income multiples for sizing coverage.
Starting or buying a business. New debts and key person needs.
A death in the family or new caregiving role.

Adding coverage at the same rate class

Clients who bought coverage recently sometimes want more. One carrier we work with lets clients add a new policy at the same underwriting class as a recently placed policy. The amount available depends on how long ago the coverage was placed and the approved rating. Contact us to check whether a client may qualify, and confirm current program availability.

Reviewing existing coverage for value

A review is also a chance to make sure a client’s current coverage is still cost-effective. A client with substantial cash value who only needs death benefit protection may be able to use a 1035 exchange into a new policy, paying the same premium for a higher guaranteed death benefit. Carrier upgrade programs are another option to explore.

Make reviews a system

The key is having a system: ask about life changes at every meeting, send annual review reminders and track key dates. Our Policy Review Kit includes sample approach letters and talking points. Contact us for a copy or for help with any policy review.

Frequently asked questions

How often should clients review their life insurance?

At least every few years and after any major life event, such as marriage, divorce, a birth, a home purchase or a significant income change.

Can a client add coverage without new underwriting?

Sometimes. Some carriers allow recently insured clients to add coverage at the same rate class within limits. Riders such as guaranteed insurability may also allow increases.

What is a 1035 exchange?

A tax-free exchange of one life insurance policy for another under Section 1035 of the tax code, which can let clients move cash value into a more suitable policy.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

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Life Insurance After Thyroid Cancer: Preferred Rates Are Possible

September 25, 2026June 18, 2021 by Tim Fuller

Thyroid cancer diagnoses have increased as screening finds smaller tumors earlier. The most common type has an excellent prognosis, and some carriers underwrite it far more favorably than others.

Key takeaways

Papillary carcinoma is the most common thyroid cancer and has a good prognosis, particularly under age 50.
Underwriters look at type, stage, treatment, time since treatment, and regular follow-up.
A 43-year-old woman treated for stage I papillary thyroid cancer two years earlier may qualify for Preferred Non-Tobacco.

Stage I papillary thyroid cancer, treated two years ago — and the client may still qualify for Preferred Non-Tobacco.

About thyroid cancer

The thyroid is a butterfly-shaped gland at the base of the neck that produces hormones regulating heart rate, blood pressure, body temperature, and weight. Thyroid cancer occurs when abnormal cells grow in the gland. Better imaging now finds small cancers that might once have gone undetected, which is part of why diagnoses have increased.

What underwriters look at

The type of thyroid cancer matters most. Papillary carcinoma, the most common type, has a good prognosis. Underwriters also weigh the stage, the treatment received, how long ago it ended, and whether the client keeps up with regular follow-up.

Case study

Female, age 43, non-smoker
Stage I papillary thyroid cancer, diagnosed and treated two years ago
Regular physician follow-up

May qualify for: Preferred Non-Tobacco.

How to prepare the case

Collect the pathology report, treatment details (surgery, radioactive iodine), and recent follow-up results. Our Underwriting Team can pre-screen the file and point you to the carrier most favorable for this history. For other cancer histories, see how a client got Standard on $3 million after prostate cancer.

Frequently asked questions

Can you get life insurance after thyroid cancer?

Yes. Early-stage papillary thyroid cancer is often very favorably underwritten, and some carriers may offer Preferred rates.

How long after thyroid cancer treatment can you apply?

It depends on type, stage, and carrier. In the case above, the client was two years past treatment and may qualify for Preferred.

Does thyroid hormone medication affect life insurance?

Replacement hormone after thyroid removal is expected and generally isn’t a concern on its own.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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The Cost of Waiting to Buy Long-Term Care Insurance

September 25, 2026June 17, 2021 by Tim Fuller

Most clients believe they won’t be among the roughly 70% of people who need long-term care, so they put off buying coverage. Waiting has a real price.

Key takeaways

Age and health are the two biggest factors in long-term care pricing and eligibility.
Waiting even five years can mean higher premiums, more underwriting, and less chance of qualifying for preferred rates.
A health change during the wait can make coverage unavailable at any price.

The best premium your client will ever get for long-term care coverage is the one available today.

Why waiting costs more

Premiums are based largely on age at purchase and health. Every year of delay raises the base rate, and every new diagnosis can reduce the rate class or lead to a decline. Preferred health discounts are much easier to get in a client’s 50s than in their 60s.

Show the numbers

Run two quotes side by side: today, and five years from now at the same benefit. Clients can see the premium difference, and the total paid over time, for themselves. Then remind them that the second quote assumes their health stays the same.

The bigger risk: not qualifying

LTC underwriting focuses on future care risk, so conditions that seem minor, such as joint problems, certain medications, or early memory concerns, can lead to a decline. Buying while healthy locks in insurability. For clients in their 40s and 50s, see selling LTC to clients aged 45–55.

Frequently asked questions

Does long-term care insurance get more expensive with age?

Yes. Premiums are based on age at purchase, and health changes over time can raise rates or lead to a decline.

What is the best age to buy long-term care insurance?

Many advisors suggest the early to mid 50s, when premiums are lower and clients are more likely to qualify for better rates.

Can you be denied long-term care insurance?

Yes. LTC underwriting is strict, and conditions affecting mobility, cognition, or future care needs can lead to a decline.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Critical Illness Insurance: Bridging the Financial Gap Health Insurance Leaves

September 26, 2026June 16, 2021 by Tim Fuller

A heart attack, stroke or cancer diagnosis can create serious financial strain even for clients with good health insurance. Out-of-pocket maximums, time away from work and ongoing household bills tend to arrive all at once. Critical illness insurance is designed to cushion exactly that moment.

Key takeaways

Health insurance pays medical providers; it does not replace lost income or cover the household bills that keep coming.
Critical illness insurance pays a lump sum on diagnosis of a covered condition such as cancer, heart attack or stroke.
Clients are far more likely to survive a serious illness before 65 than to die before 65, so the conversation belongs next to life and disability planning.

Most advisors protect clients against dying too soon. Far fewer protect them against surviving a serious illness with a pile of bills.

Why health insurance alone isn’t enough

Many families live close to paycheck to paycheck, with limited emergency savings. Even a solid health plan typically carries an out-of-pocket maximum of several thousand dollars, and a serious illness will usually hit it. At the same time, treatment and recovery often mean weeks or months away from work.

That combination of medical costs, lost income and ongoing household expenses is a perfect storm. Medical bills are consistently cited as a leading contributor to personal bankruptcy filings in the U.S., and having health insurance does not by itself prevent that hardship.

How critical illness insurance works

Critical illness coverage pays a lump-sum benefit when the insured is diagnosed with a condition listed in the policy. Covered conditions commonly include:

Cancer
Heart attack
Stroke
Other serious conditions named in the contract, which vary by carrier

Because the benefit is paid directly to the client, it can be used for anything: deductibles, travel for treatment, a mortgage payment, or simply replacing a spouse’s income while they act as caregiver. Individually owned benefits are generally received income-tax free; clients should confirm their situation with a tax advisor.

Where it fits alongside life and disability coverage

Life insurance protects the family if the breadwinner doesn’t make it home. Disability income insurance replaces a share of income over a longer period, after an elimination period. Critical illness fills a different gap: fast cash at diagnosis, when expenses spike and before other benefits may start.

For clients who can’t qualify for or afford full disability coverage, critical illness can be a meaningful partial solution. For clients who already own DI, it adds a layer of liquidity. Our article on income protection covers the disability side of the conversation.

Starting the conversation with clients

No advisor wants to learn that a client suffered a stroke and realize the topic never came up. A simple approach is to raise critical illness during every annual review and every new life or DI sale:

Ask how the household would handle three to six months of reduced income plus medical bills.
Review the client’s health plan deductible and out-of-pocket maximum.
Show a lump-sum benefit amount that would cover that gap.

Our DI and critical illness specialists can help you compare plans, covered conditions and pricing across carriers. Contact us for help with your next case.

Frequently asked questions

What does critical illness insurance cover?

It pays a lump sum when the insured is diagnosed with a covered condition, commonly cancer, heart attack and stroke. The exact list of conditions and definitions varies by carrier and policy.

Is a critical illness benefit taxable?

Benefits from an individually owned policy paid with after-tax premiums are generally received income-tax free. Employer-paid arrangements can differ, so clients should confirm with a tax advisor.

Does critical illness insurance replace disability insurance?

No. Disability insurance replaces a portion of income over time, while critical illness pays a one-time lump sum at diagnosis. They work best together, though critical illness can help clients who can’t qualify for full DI.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

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Life Insurance and Irrevocable Trusts: What to Do When the Trust Isn’t Ready

September 26, 2026June 15, 2021 by Tim Fuller

Many large life insurance cases are meant to be owned by an irrevocable trust, and the trust is often the last piece to come together. Clients understandably don’t want to pay for a trust until they know they’re insurable. That leaves advisors managing a carrier deadline they don’t fully control.

Key takeaways

Underwriting can start before the trust exists by listing the owner and beneficiary as “trust TBD” and submitting a corrected application before issue.
If the trust isn’t ready at delivery, having the insured own the policy and later sell it to a grantor trust avoids the three-year look-back and transfer-for-value problems.
Using a “surrogate owner” who later gifts the policy is risky and can create gift or estate tax exposure.

The best fix is prevention: once a medical offer makes the trust necessary, hire an attorney who commits in writing to a timeline.

How trust-owned cases usually unfold

The typical sequence looks like this:

The client applies and waits for an offer before spending money on legal work.
Once the offer arrives, the client meets with an attorney to decide what they want.
The attorney drafts the trust, often slower than anyone expected.
The carrier’s offer deadline approaches, and the trust still isn’t signed.

Sometimes an extension buys time. Sometimes it doesn’t. Planning for this from the start keeps a good offer from slipping away.

Starting underwriting before the trust exists

There’s no need to wait for the trust to begin processing and underwriting. Have the proposed insured (who will also be the trust’s grantor) sign the application as insured, and show the owner and beneficiary as “trust TBD.”

Because the application becomes part of the policy, a new ownership page (Part I) will be needed before issue, once the trust is established. The trustee signs as owner and the trust is named as beneficiary.

If the trust isn’t done by the delivery deadline

Two common approaches come up when the deadline arrives first:

Insured owns, then sells to a grantor trust. The insured accepts the policy personally and later sells it to the trust. Because it’s a sale rather than a gift, the three-year look-back for gifted policies doesn’t apply, and because the buyer is a grantor trust, transfer-for-value is generally not an issue. Our article on grantor trusts explains why.
Surrogate owner who later gifts the policy. Someone else owns the policy temporarily and is expected to gift it to the trust. This is risky: nothing guarantees the surrogate will make the gift, and if the insured dies early the proceeds may not end up where intended. Gift or estate tax consequences can follow.

Either path should be reviewed with the client’s attorney and tax advisor before delivery.

Preventing the problem in the first place

As soon as a medical offer makes the trust necessary, encourage the client to engage an estate planning attorney who will confirm in writing that the documents will be ready in time. Share the carrier’s delivery deadline with the attorney early.

Our Advanced Markets team helps with cases involving insurance in all types of trusts, including irrevocable, revocable, charitable and special needs trusts. Contact us before the deadline gets tight.

Frequently asked questions

Can I submit a life insurance application before the ILIT is signed?

Yes. The insured can sign as proposed insured with owner and beneficiary shown as “trust TBD.” A corrected ownership section is submitted once the trust exists and before the policy is issued.

Does selling a policy to a grantor trust trigger the three-year rule?

The three-year look-back applies to gifted policies. A bona fide sale to the insured’s grantor trust generally avoids it, and the grantor trust exception typically avoids transfer-for-value. Confirm with counsel.

Why is a surrogate owner risky?

The surrogate has legal ownership and no binding obligation to gift the policy on time. If the insured dies first, the proceeds may go to the wrong party and create gift or estate tax problems.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

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4 Misconceptions Clients Have About Disability Insurance

Misconception 1: “Workers’ comp will cover me”

Misconception 2: “Sick leave and vacation are enough”

Misconception 3: “It won’t happen to me”

Misconception 4: “Cancer is the leading cause”

Use the facts to start conversations

Frequently asked questions

Tim Fuller

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The case: a grandfather, a grandchild and a will

What actually happened

Why this is more common than you think

How to prevent it

Frequently asked questions

Tim Fuller

We’re Here to Help

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