Blog Archives - Page 17 of 31

Case Study: $10 Million Permanent Total Disability Coverage for an NFL Running Back

September 25, 2026August 18, 2021 by Tim Fuller

Professional working confidently at her desk, representing disability income protection

A second-round NFL running back, three strong seasons in, was approaching free agency and the biggest contract of his career. One serious injury before signing could have wiped it out.

Key takeaways

Players nearing free agency have the most future income at risk.
His coverage increased from $5 million to $10 million of permanent total disability protection at renewal.
The premium was about $90,000 plus taxes and fees.

From $5 million to $10 million of protection, so a career-ending injury wouldn’t erase his next contract.

The situation

Drafted in the second round, the player had completed three successful seasons and was heading into free agency. A permanent total disability before signing a new deal would have cost him the contract he’d earned.

The solution

His first policy provided $5 million of permanent total disability coverage. After another standout season, his advisor requested an increase at renewal. Working with his agent and advisor, we placed a $10 million permanent total disability policy.

The result

The benefit, generally received tax-free when premiums are paid personally, gave him peace of mind that his future contract and lifestyle were protected. The premium was roughly $90,000 plus taxes and fees.

Beyond pro athletes

Star athletes need specialized coverage, but many high earners have similar gaps. See income protection for high earners and a draft prospect case.

Frequently asked questions

Do NFL players buy their own disability insurance?

Many do, especially before free agency or a new contract, to protect future earnings beyond league-provided benefits.

How much disability coverage can a pro athlete buy?

It depends on projected earnings. Specialty markets can place $10 million or more.

Is permanent total disability insurance taxable?

Benefits are generally tax-free when the insured pays the premiums personally.

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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Income Replacement Multiples: How Carriers Decide How Much Life Insurance a Client Can Buy

September 25, 2026August 17, 2021 by Tim Fuller

Underwriter reviewing medical and financial data with a client during risk assessment

Clients often underestimate how much life insurance they can buy. Carriers’ own financial underwriting guidelines usually allow far more coverage than clients assume, and they’re a useful tool for showing what survivors would really need.

Key takeaways

Carriers use a multiple of annual earned income, based on age, to set the maximum coverage for income replacement.
Multiples fall with age: a conservative carrier might allow 20–25x in a client’s 20s and 2–5x over age 65.
Non-working spouses can usually get at least half the coverage of the working spouse.

Even a conservative carrier may allow 15–20 times annual income for a client in their 30s.

Why carriers limit coverage

Financial underwriting exists to prevent over-insurance, not to grow the sale. Carriers standardize what they consider a reasonable amount of coverage based on the applicant’s situation. For income replacement, the most common need, that starts with a multiple of current annual compensation.

Income multiples by age (conservative example)

20–29: 20–25x
30–39: 15–20x
40–49: 12–15x
50–54: 10–12x
55–59: 8–10x
60–65: 5–8x
Over 65: 2–5x

Multiples decrease with age because fewer income-earning years remain. They vary by carrier, and many are more generous than these.

What income counts

Carriers generally use pre-tax earned income, which works in the client’s favor because the death benefit is usually paid income-tax-free. Unearned income typically isn’t counted unless the insured’s death would directly affect it. Non-working spouses can usually be covered for at least half the working spouse’s amount. For business owners, see how coverage above normal limits can be justified in a sweat equity case.

Using the multiples in a client conversation

Showing a client the carrier’s own maximum helps them see how large a pool of money their family would need. For young, healthy clients, competitive term pricing makes adequate coverage affordable even at high multiples. Call us with any financial underwriting question before you quote.

Frequently asked questions

How much life insurance can I get based on income?

Carriers typically allow a multiple of annual earned income that depends on age, from roughly 20–25 times income in your 20s down to 2–5 times over 65, though limits vary by carrier.

Can a stay-at-home spouse get life insurance?

Yes. Non-working spouses can usually be covered for at least half the working spouse’s coverage amount.

Do carriers use gross or net income?

Usually gross (pre-tax) earned income, which works in the client’s favor since death benefits are generally income-tax-free.

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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Business Insurance Needs Checklist for Small Business Owners

September 26, 2026August 16, 2021 by Tim Fuller

Small business owners often have their largest asset tied up in a company that has no plan for death, disability or retirement. You don’t need years of training to help. This checklist covers the six core needs to review with every business owner client.

Key takeaways

Most business owners have six core needs: retirement income, exit planning, income protection, business protection, wealth transfer and survivor income.
A business valuation and a review of the existing buy-sell agreement often reveal the biggest gaps.
SRS can provide business case support so you can start these conversations without being an expert.

Helping clients see the real value of their business is often what uncovers the planning gap.

The six core needs checklist

Use these six areas as a checklist in your next business owner review:

Retirement income. Is the owner saving outside the business, or is the business the retirement plan?
Exit planning. Who will buy the business, at what price, and how will the purchase be funded?
Income protection. What happens to the owner’s income, and the business, if the owner becomes disabled?
Business protection. Is there key person coverage on the people who drive revenue?
Wealth transfer. How will the business and other assets pass to the next generation?
Survivor income. Will the family have income if the owner dies before the business is sold?

Start with the value of the business

Many owners have never had a formal estimate of what their business is worth. Without one, it is hard to size a buy-sell, key person coverage or an estate plan. A business valuation gives the owner perspective and usually starts the planning conversation on its own.

Review the buy-sell agreement

If a buy-sell agreement exists, check that it is funded, that the price or formula is current and that the ownership structure still makes sense. Many agreements were signed years ago and never updated as the business grew. Our article on cross-purchase buy-sell agreements covers common structures.

How SRS supports business cases

Our team works with you before, during and after the sale. We can help you:

Decide which business owners to approach and how
Build a simple marketing campaign
Help clients estimate the value of their business and review buy-sell agreements
Explain the findings and create an action plan

Frequently asked questions

What insurance does a small business owner need?

Common needs include key person life insurance, buy-sell funding, disability income and business overhead expense coverage, and personal life insurance for survivor income. The right mix depends on the business and the owner’s goals.

Why does a business valuation matter for insurance planning?

The value of the business drives how much buy-sell funding, key person coverage and estate planning the owner needs. Without a current value, coverage is often too low.

How often should a buy-sell agreement be reviewed?

A good rule is to review it every few years and after any major change in value, ownership or tax law, so the price and funding stay current.

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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The A-B-C’s of a Long-Term Care Cash Benefit

September 25, 2026August 12, 2021 by Tim Fuller

Everyone understands what cash can do. That’s why a long-term care policy with a built-in cash benefit is one of the easiest features to explain, and a simple A-B-C framework helps clients see its value.

Key takeaways

A is for Assets: a cash benefit helps clients avoid liquidating investments or property to pay for care.
B is for Burden: cash can pay for help that keeps adult children from carrying the load alone.
C is for Choices: cash can be used however it’s needed, from home care to a plane ticket for a child who comes to help.

With a cash benefit, the money goes where it’s needed most: a caregiver, meal delivery, housekeeping, or a flight home for a daughter who helps.

A is for Assets

When care is first needed, many people worry about paying for it without selling stocks, cashing in CDs, or selling property, sometimes at the wrong time. A cash benefit provides money without touching those assets.

B is for Burden

Families usually step in when a loved one needs care, but adult children have their own jobs and families. Most clients’ biggest fear is becoming a burden. Cash can pay for help that lightens the family’s load. See why family shouldn’t be the long-term care plan.

C is for Choices

A cash benefit can be used however it’s needed: home care, housekeeping, meal delivery, transportation, or a plane ticket so a child can help. It can also help pay a family caregiver, which many reimbursement policies don’t allow; see caregiver contracts and LTC insurance.

Features to look for

Cash benefit designs vary. One of our carriers makes cash available from the first day of benefit eligibility, with no additional waiting period, and lets the insured switch to a traditional reimbursement benefit later if they need a higher level of care. Our LTC team can compare cash, indemnity, and reimbursement options for your client.

Frequently asked questions

What is a cash benefit in long-term care insurance?

A benefit paid in cash once the insured qualifies for care, which can be used for any purpose, rather than reimbursing specific care expenses.

What’s the difference between cash and reimbursement LTC benefits?

Reimbursement pays for documented care expenses from qualified providers. Cash pays a set amount the insured can use however they choose.

Can a cash benefit pay a family caregiver?

Yes. Because the insured controls the cash, it can be used to pay a family member for care.

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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Structuring a Disability Buy-Out Policy: Elimination Periods, Benefits, and Cost

September 25, 2026August 11, 2021 by Tim Fuller

Buy-sell agreements almost always address death and retirement. Far fewer address what happens if a partner becomes too sick or injured to work. Here’s how disability buy-out coverage is structured, and why it’s often more affordable than owners expect.

Key takeaways

Based on industry disability tables, three partners averaging age 37 have about a 78% chance that at least one becomes disabled before retirement.
A disability buy-out policy typically uses a 12- to 24-month elimination period and pays a lump sum, installments, or both.
In one example, covering all three partners of a $1.5 million CPA firm cost less than $500 a month.

Three partners, average age 37: roughly a 78% chance at least one becomes disabled before retirement.

Why partners need it

Partners depend on each other. If one can no longer function as an owner, the others need a way to buy out their interest, and the disabled partner needs to be paid fairly. Based on the Commissioner’s Individual Disability Table A (equally weighted, all occupation classes, unisex), three partners averaging age 37 have about a 78% chance that at least one becomes disabled before retirement. More on adding disability to buy-sell planning.

Key design decisions

Benefit amount: tied to the disabled owner’s share of the agreed business value, with options to increase as the business grows.
Elimination period: usually 12, 18, or 24 months, long enough to confirm the disability is lasting and to match the buy-sell’s trigger.
Payout: lump sum, monthly installments, or a down payment plus installments.
Ownership: cross-purchase (owners own policies on each other) or entity-owned, matching the buy-sell structure.

Cost example

For a three-partner CPA firm with an average age of 35 and a $1.5 million valuation, one carrier’s plan covered all three partners for less than $500 a month, with premiums guaranteed to retirement age. Costs vary by ages, occupation, and design.

Next steps

Review clients’ existing buy-sell agreements to see whether disability is addressed, and make sure the agreement’s definition of disability matches the policy.

Frequently asked questions

How likely is a business partner to become disabled?

For three partners averaging age 37, industry tables suggest about a 78% chance at least one becomes disabled before retirement.

What elimination period is used for disability buy-out insurance?

Typically 12 to 24 months.

Is disability buy-out insurance expensive?

Often less than expected. In one example, three CPA partners were covered for under $500 a month combined.

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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Buy-Sell Funding: Cross-Purchase vs. Entity Redemption After Connelly

September 26, 2026August 10, 2021 by Tim Fuller

How a buy-sell agreement is structured matters as much as whether it’s funded. The Supreme Court’s 2024 decision in Connelly v. United States made the choice between cross-purchase and entity redemption more important for many business owners. Here’s how the two compare, and why informal shortcuts cause trouble.

Key takeaways

In a cross-purchase, owners buy policies on each other; in an entity redemption, the business owns the policies and buys back the shares.
After Connelly (2024), life insurance proceeds held by a corporation to redeem shares can increase the company’s value for estate tax purposes.
Joint policy ownership without a written agreement gets money to the survivors but leaves price, obligation and tax questions unresolved.

Buy-sell plans built only on joint policy ownership assure one thing: the money gets to the buyers. After that, it’s all up for grabs.

Cross-purchase vs. entity redemption

Cross-purchase: Each owner owns and is beneficiary of a policy on the other owners. At a death, the survivors receive the proceeds and buy the deceased owner’s interest. Survivors generally get a step-up in basis on the purchased shares. The downside is complexity as the number of owners grows. Our article on cross-purchase agreements goes deeper.

Entity redemption: The business owns one policy on each owner and uses the proceeds to redeem the deceased owner’s shares. It’s simpler to administer, but surviving owners don’t get the same basis increase, and after Connelly the estate tax picture changed.

What Connelly v. United States changed

In Connelly v. United States (2024), the Supreme Court held that a corporation’s obligation to redeem a deceased shareholder’s stock does not offset the life insurance proceeds it receives to fund that redemption. As a result, the proceeds increased the value of the company, and of the deceased owner’s shares, for estate tax purposes.

For owners with larger estates, corporate-owned redemption plans may now create more estate tax exposure than expected. Many advisors are reviewing existing entity plans and considering cross-purchase or other structures. With the federal exemption now $15 million per person, this matters most for larger businesses, but clients should review it with their tax and legal advisors.

The trouble with jointly owned policies

Because drafting a formal agreement takes time and legal fees, some owners skip it and simply own policies jointly. With owners A, B and C, A and B jointly own the policy on C, and so on. When C dies, A and B have funds to buy C’s interest.

But without a written agreement:

Surviving owners have no legal obligation to buy, leaving the deceased owner’s family in limbo.
The estate has no obligation to sell, so heirs may become new business partners.
There’s no fixed price for estate or income tax purposes.
Rearranging interests in the remaining policies could trigger transfer-for-value problems.

What advisors should do

If clients refuse to put a written plan in place, at least get coverage issued with the most suitable ownership arrangement, since the worst outcome is a death with no coverage in force. Then document your advice with a letter recommending they review the plan with their tax and legal advisors. Our buy-sell and business transition article offers more ideas.

Frequently asked questions

What is the main difference between cross-purchase and entity redemption?

In a cross-purchase, the owners buy policies on each other and purchase the shares themselves. In an entity redemption, the business owns the policies and buys back the shares.

What did Connelly v. United States decide?

The Supreme Court held in 2024 that life insurance proceeds a corporation receives to redeem a deceased owner’s shares are not offset by the redemption obligation, which can increase the company’s value for estate tax purposes.

Is joint ownership of life insurance a valid buy-sell plan?

It gets money to the surviving owners, but without a written agreement there’s no obligation to buy or sell and no set price. A formal agreement drafted by an attorney is strongly recommended.

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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Lower Life Insurance Premiums With an Installment Death Benefit Option

September 26, 2026August 9, 2021 by Tim Fuller

Most life insurance pays the death benefit as a single lump sum. A few carriers now let the policy owner choose a guaranteed income stream instead, and reward that choice with lower premiums. It’s a useful tool when underwriting or budget puts the right amount of coverage out of reach.

Key takeaways

Some carriers let owners elect a guaranteed monthly or annual income stream death benefit on term and UL policies.
The longer the payout period, the larger the premium discount, which can offset a rating or tight budget.
Payouts can be customized, such as an anniversary payment to a spouse or annual gifts to a grandchild.

The option lets clients control how the benefit is paid while lowering the cost of coverage today.

How an installment payout option works

Under an income provider or installment option, the policy owner selects a guaranteed annual or monthly income stream to be paid to one or more beneficiaries instead of a lump sum. Because the carrier pays the benefit over time, it can offer graded premium discounts based on how long the payout lasts.

The option is available from a limited number of carriers on certain term and universal life products. Confirm current availability before building it into a proposal.

When to use it

An installment option is especially helpful when:

An underwriting rating pushes the premium above what the client will pay
The client needs more coverage than their budget allows
The client worries a beneficiary may spend a lump sum too quickly

It can help clients get the amount of coverage they actually need. For help sizing that amount, see our article on life insurance income multiples.

Personalizing the payout

Owners can structure payments to reflect what matters to them. A surviving spouse might receive a payment every wedding anniversary, or a grandchild might receive a birthday gift each year for a set number of years. This personal touch often resonates with clients and adds meaning to the policy.

Two benefits for your client

The option gives clients peace of mind that their family will be cared for the way they intended, and lower premiums that leave more money available while they’re living. If you have a client in mind, contact us and we’ll run comparisons with and without the installment option.

Frequently asked questions

Does choosing an income stream death benefit really lower premiums?

With carriers that offer it, yes. Premium discounts are graded by the length of the payout period, with longer payouts generally producing larger discounts.

Can the beneficiary change the payout to a lump sum later?

Usually the owner’s election controls how the benefit is paid, which is part of what makes the discount possible. Check each carrier’s contract terms.

Which policies offer an installment death benefit option?

A limited number of carriers offer it on selected term and universal life products. Contact us to confirm current availability.

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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Never Say Never: How Our Underwriting Team Gets Declined Cases Placed

September 25, 2026August 6, 2021 by Tim Fuller

A decline isn’t always the final word. Sometimes the carrier simply didn’t have the full picture, and the difference between a lost case and a placed one is an underwriting team willing to go back and ask.

Key takeaways

Declines often happen because records are incomplete or out of date, not because the risk is unacceptable.
Asking the carrier for reconsideration with updated information can reverse a decision.
In this case, a declined LTC rider on a $1 million UL policy was approved after interim details were provided.

The LTC rider was declined. We went back with updated details — and it was approved. The case was placed.

The case

A 60-year-old applied for $1 million of universal life with a long-term care rider. His medical records showed inflammatory arthritis, and the carrier declined the LTC rider.

August 2016: joint pain in hands and feet, first treated as presumed gout without relief
Normal rheumatoid factor and uric acid tests
Rheumatology diagnosed inflammatory arthritis and prescribed meloxicam; pain improved within three months
Last visit October 2018: no joint pain, no medication

What we did

The records stopped in 2018, so the underwriter had no information on his current condition. We went back to the carrier and arranged to provide interim details. They showed no further joint pain and no medication since 2016. After reviewing the update, the carrier approved the LTC rider and the case was placed.

Why reconsideration works

Underwriters decide based on what’s in the file. If the file has gaps, they assume the worst. Filling those gaps with current, documented information often changes the answer. We take the same approach on every difficult case, including one that was declined by three carriers before a Standard offer.

Bring us your difficult cases

If you have a decline, a postponement, or an offer that doesn’t match your client’s health, contact our Underwriting Team. We’ll review the file and look for a path to a better outcome.

Frequently asked questions

Can a life insurance decline be reversed?

Sometimes. If the decline was based on incomplete or outdated records, a carrier may reconsider when given current, documented information.

What is an underwriting reconsideration?

A request for the carrier to review a decision again, usually with new information such as a doctor’s statement or updated test results.

How does an IMO/BGA underwriting team help?

We know each carrier’s guidelines, can pre-screen cases, and advocate with carrier underwriters to get the best possible decision.

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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Selling Long-Term Care Insurance to Clients Aged 45–55

September 25, 2026August 5, 2021 by Tim Fuller

Clients aged 45 to 55 are one of the best long-term care markets you can pursue. They usually understand the need, they’re healthy enough to qualify, and premiums are lower than they’ll ever be again. The challenge is urgency.

Key takeaways

Clients in their late 40s and early 50s often know they need LTC coverage but delay because of cost and competing priorities.
The strongest argument is timing: age and health drive price and eligibility, and both get worse with time.
Coverage isn’t all-or-nothing; a smaller plan with a shorter benefit period can fit most budgets.

Waiting doesn’t just raise the premium. It raises the chance your client won’t qualify at all.

Know this market

People in this age group are often paying for college, saving for retirement, or already caring for aging parents. They understand long-term care risk, sometimes firsthand, but it feels like a problem for later.

Common objections

“I’m too young to deal with this right now.”
“I have other priorities.”
“I can’t afford another bill.”

Acknowledge the concern before responding. Clients who feel heard are more willing to keep talking.

Two responses that work

Why now: “I understand you have a lot competing for your money. Coverage is most affordable while you’re young and healthy, and waiting can make it harder to get later. Let’s look at a few options that take advantage of your age and health today.”

Too expensive: “I hear you on the budget. The most important thing is having some coverage rather than none. Let’s look at designs that still provide strong protection at a premium that fits.”

Design for the budget

A three-year benefit period, a longer elimination period, or a more moderate inflation option can lower the premium significantly while still covering a typical claim. See five ways to make LTC more affordable and the cost of waiting.

Frequently asked questions

Is 50 too young to buy long-term care insurance?

No. Many advisors consider the early 50s an ideal time, when premiums are lower and clients are more likely to qualify.

What if my client says long-term care insurance is too expensive?

Show smaller designs, such as a three-year benefit period or longer elimination period, that still provide meaningful protection.

Why do younger clients delay buying LTC insurance?

Competing priorities like college costs and retirement saving, and a sense that care needs are far off.

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 Disability Benefit Review: 12 Questions That Uncover Coverage Gaps

September 25, 2026August 4, 2021 by Tim Fuller

One of the simplest ways to grow disability sales is to review coverage your clients already have. Most have group LTD at work and have never looked closely at what it actually provides.

Key takeaways

A benefit review turns “I’m covered at work” into a clear picture of what’s missing.
Key gaps include waiting periods, benefit caps, excluded bonus income, taxation, and portability.
Clients who see the gaps in writing are much more likely to act.

Twelve questions, one review, and most clients discover their group plan isn’t what they thought.

12 questions to ask

How long is the waiting period before group LTD benefits begin?
What percentage of pay, if any, is paid during the waiting period?
If partial benefits are available, must they be totally disabled during the waiting period?
What percentage of pay does the benefit replace?
What’s the maximum monthly benefit?
Is bonus or incentive pay covered?
How long are benefits payable?
Will the plan pay if they return to work at reduced capacity?
Is the benefit taxable?
Who pays for health insurance and other benefits while they’re disabled?
Are benefits adjusted for cost of living?
Can they keep the coverage if they change employers?

Turning answers into recommendations

Send us the plan summary and the answers, and we’ll show where supplemental individual coverage fits. Common findings are covered in why 60% group coverage can feel like a 58% pay cut and group LTD offsets.

Frequently asked questions

What should I look for in a group disability plan?

Waiting period, percentage replaced, benefit cap, covered income, benefit duration, taxation, partial disability, COLA, and portability.

Why review a client’s group disability coverage?

Most clients overestimate what their group plan pays. A review reveals gaps individual coverage can fill.

Is group disability insurance portable?

Usually not. Coverage typically ends when the employee leaves the employer.

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

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Connect on LinkedIn →

Case Study: $10 Million Permanent Total Disability Coverage for an NFL Running Back

The situation

The solution

The result

Beyond pro athletes

Frequently asked questions

Tim Fuller

We’re Here to Help

Why carriers limit coverage

Income multiples by age (conservative example)

What income counts

Using the multiples in a client conversation

Frequently asked questions

Tim Fuller

We’re Here to Help

Tim Fuller

We’re Here to Help

Tim Fuller

Tim Fuller

Tim Fuller

Tim Fuller

Tim Fuller

Tim Fuller

Tim Fuller